Introduction & Methodology

SushiSwap is one of the biggest DEXs on entire DEFI ecosystem which supports various chains (17 different networks as we speak). In this dashboard we are going to see how much fee users paid in USD and ETH since the beginning of 2022 on SushiSwap and whether or not it has some correlation with ETH price in this period?

To achieve this goal I calculated fees paid in various SushiSwap transactions in USD and ETH; Also demonstrated what for the fees was paid for in terms of type of transaction. I also provided some informative comparative charts for ETH price and Number of Transactions that might explain up and downs in amount of fees.

Data & Analysis

As mentioned before, there are various type of transactions like swapping (ETH included or not included), providing liquidity, withdraw, approve, creating pairs, etc. In next two charts you can see how much fee paid in USD and ETH divided by the function. Since both charts are similar, it suggests that reduction of ETH price doesn't relate to reduction of USD fee, considering the fact that the amount of ETH paid for fees are decreasing too.

• fees increase in second week of May is due to crash of terra and overall market which led to more transactions and fees across whole DEFI.

You can compare Charts above to average price of ETH depicted in next chart. Although ETH price is decreasing in a long trend, but you can't say it completely matches to decrease in fees; For example from the week of Jan 24th to week of May 2nd ETH price is moving in a uptrend with some significant spikes, and yet the fees paid are decreasing.

To understand what might be the reason, i created next chart that compares fee paid in USD to number of weekly transactions (I multiplied number of transactions by 50 to better demonstrate the comparison). This chart surely evident the direct positive relation between Number of transactions and fees paid, suggesting that overall use of Ethereum block chain is decreasing and this effects fees paid in two ways:

• actual fees generated through transaction which will be lower since the number of transactions are decreasing.
• decreasing of gas required for each transaction since the network is pretty much quiet.

I personally had similar transactions in both early 2022 and lately, former paid more that 80$ and latter only 10$.

This is also true in Polygon transaction fees on SushiSwap - As the number of transactions are decreasing, fees are decreasing too.

conclusion

With all that said, we can say that both Number of transaction and ETH price has impact on decrease of fees paid on SushiSwap and potentially across DEFI. Number of transactions seems to have direct impact but it also gets impacted by ETH price decrease; So it should look like this:

ETH price decrease (along with entire market) creates a sense of bear market, people no longer are willing to actively participate in various DEFI operations, this leads to decrease in number of transactions, more quiet network which wipes the congestion effect significantly and these all leads to decrease in fees paid.