Time To Load Up On ERC20 Tokens As ETH Gas Fees Hit 7-Month Low.

(Last Updated On: April 13, 2022)

This might be the perfect time to add some ERC20 tokens to your portfolio as gas fees on the Ethereum network hit a seven-month low. Data released by the blockchain analysis platform Arcane Research has found that the average Ethereum (ETH) transaction fees are at their lowest point since last August. Let’s take a look at why gas fees have dropped. Could this be the perfect opportunity to buy ERC20 tokens like MANA and SHIB on the cheap?

Time To Load Up On ERC20 Tokens As ETH Gas Fees Hit 7-Month Low.

ETH fees in 2021

2021 was not a good year for ETH gas fees. In Jan 2021, gas fees hit an all-time high and then collapsed only to start spiking again in mid-2021. 

We’ve grown to associate high gas fees with the Ethereum network without a second thought. That is why it’s unusual to hear that they are dropping. Nevertheless, they are, and according to Arcane Research, gas fees are 82% lower than this time last year. 

ETH fees in 2021

What’s causing the drop? 

The main driver behind the drop in gas fees is the same factor that drove its price to spike last year: NFTs. 

2021 was the year of the NFT. Most of the biggest NFT marketplaces, such as OpenSea and Rarible, rest on Ethereum. Therefore, NFT trading traffic is naturally reflected in an increase in activity on the Ethereum network. 

NFT trading volume on OpenSea snowballed in 2021, but since January 2022, it has begun to drop off quickly. The chart on Delp Digital shows that volume on the NFT marketplace has fallen from a peak of $247 million in early February all the way down to $67 million. 

The reason for the reduction in the use of the Ethereum network could be due to fewer people trading ETH and increased use of alternative networks for NFT trading. 

What’s causing the drop? 

Traders Losing Interest In ETH

Ethereum’s native token ETH has had a bumpy start to 2022, which could be one reason for a drop in gas fees. 

According to CoinGecko, ETH was trading around $3,700 in early January. Since then it followed in a downward trend hitting a 90-day low of approximately $2,200 in late January. 

The bearish trend currently pushing down on ETH may have put some people off. Hence, with less demand for the token, there is less traffic on the network, which translates into lower gas fees. 

Traders Losing Interest In ETH

A Drop In NFT Trading Volume 

Even though Ethereum is still the king of NFT networks, competition is heating up. Polygon (MATIC) is a layer 2 Ethereum protocol, and it allows users to trade on the Ethereum blockchain indirectly. 

Solana (SOL) and Avalanche (AVAX) are often seen as cheaper and faster alternatives to Ethereum. Their role in the NFT space is expanding exponentially partly due to how expensive and slow ETH has become. 

Although there could be other reasons for the drop in gas fees, it seems likely that NFT trades are a significant factor. 

Regardless of what caused the drop in gas fees and whether it will continue, we should see this as an opportunity and ask ourselves, “how can I benefit from this?”. 

A Drop In NFT Trading Volume 

Take Advantage Of Low Gas Fees On Swapzone 

If you’ve held back from swapping cryptocurrencies for ERC20 tokens because of gas fees, this could be your opportunity to make some trades. Remember that low gas fees don’t mean free transactions; according to BitInfoCharts, the average tokens wap will still set you back around $10. 

On Swapzone, you can buy all sorts of Ethereum tokens, including MANA, SHIB, and KISHU, and it compares exchanges services and exchange rates all across the web to help you trade with the lowest possible fees.

How to buy ERC20 tokens with crypto on Swapzone?

  1. Go to Swapzone.io to get started.
  2. Select the Ethereum (ETH)  to Shiba Inu (SHIB) exchange pair.
  3. Specify the total amount of ETH you wish to exchange.
  4. Compare the rates and use the best ETH to SHIB exchange deal.
  5. Click the Exchange button to proceed with the offer.
  6. Enter your wallet address to receive SHIB
  7. Copy the ETH address generated and send your ETH deposit.
  8. Allow the deposit to process and for the ETH-SHIB exchange to be done.
  9. Don’t forget to rate the service and give a review.

How to buy ERC20 tokens with crypto on Swapzone?

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