Gas Prices Decline As The Number of Active Accounts Drops
On Oct 13, 2020
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As the active addresses decline, it affects the gas prices on Ethereum to decrease, and it is beneficial for investors.
Fluctuations in Gas Prices
The recent history showed that gas prices of Ethereum peaked at 14.5 ETH on September 2. This high price correlated with the SushiSwap Frenzy, which resulted in more than a billion dollars moved from Uniswap to the DEFI. The next high price was an average of 11.6 ETH on September 17. The reason was Uniswap introduced its ETH liquidity pools and UNI mining incentives. Now, the gas prices down to a one-digit number. According to data, the average fee is 1.3 ETH.
Correlation Between Active Addresses and Transaction Fee
According to Santiment, the active addresses on the Ethereum have declined significantly. During August and September, the unique addresses increased due to the creation of opportunities by the Uniswap and others. Since September 17, the active addresses are declining from 441.1k to the 381.8k. We can see as the active users decrease, the transaction fee also becomes less. The reason can be less transaction causing less demand for transaction and gas prices to go down.
Ethereum Price Trends
There is an overall flourishment in the economy, and it affects all the sectors within it. Famous indexes showed an increase in the last days and the price of Ethereum as well. The worth of ETH was $338 on October 6, and till October 12, it hiked by 9%. Now the price of one Ethereum is $380. If the prices continue to increase in the same way, then ETH can see the $400 level, which has seen at the end of August. On September 1. Ethereum has reached its all-time peak to $476.
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