Ethereum gas usage by stablecoins, DeFi, NFTs, and ERC -20 contracts
Gas fees refer to the cost of conducting a transaction or executing a contract. For example, this could take the form of exchanging into a stablecoin or minting an NFT. Since the summer of 2020, Ethereum gas fees took off primarily due to the explosion of DeFi use on the chain. Although network activity has tailed off significantly since Mayo 2021, the adage of Ethereum being an expensive chain to use still prevails. Source: messari.io Ethereum gas fees are priced in gwei, which is a unit of measure equivalent to one billionth of one ETH. The exact gas cost depends on the networks congestion at the time of transacting, with peak periods requiring higher gas fees to push through the transaction. The current average gas price is $ 13.28, down significantly from the May 1 local top, when a transaction cost $474.57 on average. Stablecoin usage Stablecoins are cryptocurrencies designed to minimize price volatility by keeping a fixed value, regardless of the price of Ethereum. The market offers various types of stablecoins, such as asset-backed, including fiat, crypto, or precious metal assets, and algorithmic, which add to or subtract from circulating token supply to peg the price at the desired level. The chart below accounts for over 150