The transaction charges for Bitcoin and Ethereum have dropped down to a record six-month low as markets begin to recover after the recent cryptocurrency recession. The median price for carrying out a transaction using Bitcoin has further declined from an early-April peak of around $63 to approximately $7.38. This is a drastic 88 percent drop over six weeks.
The declining transaction charges for Ethereum and Bitcoin have been a result of a mass decline in market activity, with day-to-day trading volumes declining from upwards of $67 billion on the 10th of May to $34 billion. The growing market for crypto in 2021 has seen transaction charges links to using Bitcoin or Ethereum shoot up to unparalleled levels throughout recent months.
In February this year, the fees for Bitcoin almost tripled in 2 weeks after it was announced on the 8th of February that Tesla, the automobile company, added Bitcoin worth $1.5 billion to its ledger. The announcement triggered a surge in cryptocurrency speculation, the value preceding its past peak of $40K before briefly peaking at around $54K.
The median price for Bitcoin transaction charges reached a peak high of $63 on the 21st of April following Bitcoin’s surge to $64,804 on April 14. The fees for Bitcoin reached their peak on April 21, triggered by a surge in marketplace activity, as the markets began to show weakness as investors competed with each other to gain high revenue.
The transaction charges for Ethereum reached a record peak of $71 on the 19th of May, driven by a rush of investors seeking to gain high revenue amidst falling cryptocurrency prices. At the peak of market volatility, Meltem Demirors, chief strategist at CoinShares claimed to have been charged above 1K for just one transaction.
