ETH Gas Fees had a Volatile May With Record Highs and Lows

Volatility in gas fees and network congestion continue to haunt users on the Ethereum Network.

Network Congestion 

Ethereum($ETH) Gas fees had a turbulent May, with the highest and lowest gas fees ever recorded.

Amidst a turbulent crypto market, the main metrics on the Ethereum network suggest that the market is on the decline.  

The Yuga Labs metaverse land launch on May 1 resulted in users spending over $170 million on gas fees alone and 1653 ETH lost in failed transactions.

Source: Gas price skyrocketed on May 1 as Yuga Labs launched its metaverse land sale that sparked a buying frenzy and a badly congested network

The average price for Ethereum gas rose 20% compared to April.

Total value locked (TVL) in the Decentralized Finance (DeFi) sector fell by more than 40%.

The creation of ERC-20 tokens across all networks fell by 39%.

Source: A sharp decline in TVL in May could be a result of liquidations that took place after the crypto market capitulated 

Ethereum will be transitioning soon into a Proof of Stake consensus protocol, but unfortunately, the Merge will not lower Ethereum gas fees. 

The average daily transaction on the Ethereum network in May stands at 1,127,787 transactions.

At the time of writing, the price of ETH stood at $987.38, according to CoinMarketCap.

What is Ethereum:

Ethereum is the most utilized blockchain network within the Decentralized Finance (DeFi) markets due to its smart contract functionality for developers to deploy. Ethereum was founded in 2015 by a team of developers that included Vitalik Buterin and the founder of Polkadot, Gavin Wood. After the smart contract functionality inclusion, Ethereum became the most popular network for the deployment of Decentralized Applications (dApps) and currently has a total value locked (TVL) of $67.3 billion, as per data from DeFiLlama.

Find more about Ethereum here:

Website | Twitter | Documentation | Whitepaper | Reddit | Discord | Youtube | GitHub | Ethereum Foundation Blog

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