Ethereum (ETH) Gas Fees at Multi-Month Lows, Data Shows

3 months ago 0

Thanks to the introduction of blobs on Ethereum (ETH) post-Dencun, network usage is more cost-optimized than ever before. Developers wonder if the price of gas will increase once market activity recovers.

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Ethereum (ETH) Average Gas Price Falls to 6 Gwei
Ethereum (ETH) Fees Dropped 15x After Dencun

Ethereum (ETH) Average Gas Price Falls to 6 Gwei

Today, according to automated tracking services, the average gas fee on the Ethereum (ETH) network reached 6 Gwei. This is the lowest level since January 2020, according to Etherscan data. As a result, all on-chain trading on Ethereum (ETH) became extremely cheap for accounts.

Ethereum base fee is at all-time lows. The blob rate has not yet entered price discovery (with one very brief exception) and is therefore absolutely at 0.
Is this the new normal or will we see periods of +100 GWEI again and what demand will drive them?

– Martín Köppelmann 🦉💳 (@koeppelmann) May 10, 2024

According to Etherscan, users can exchange assets with a fee of $5, while cross-chain bridging is available for $2. For $9, users can mint non-fungible tokens in Ethereum (ETH).

In terms of dollar-denominated gas fees, current prices are the lowest in six months – the last time the dollar price of ETH gas was this low was in November 2023.

This drop should be attributed to both the effects of the Cancun-Deneb (Dencun) upgrade and low on-chain activity on Ethereum (ETH). As cryptocurrency prices take a breather amid a rally, many usage metrics have fallen in recent days.

Ethereum loses deflationary status after Dencun upgrade, here’s why

As Guru-Investingpreviously reported, the Ethereum (ETH) supply even lost its deflationary status due to a combination of these factors.

Ethereum (ETH) Fees Dropped 15x After Dencun

Since the activation of Dencun in mid-March 2024, the fee price of dollar-denominated Ethereum (ETH) has dropped 15 times, from $30 to $2. BitInfoCharts says.

As Guru-Investingreported yesterday, Ethereum (ETH) founder Vitalik Buterin has already proposed the next radical gas mechanism upgrade.

Vitalik Buterin Solves Ethereum Gas Fee Issue

The multidimensional gas concept is expected to allow Ethereum (ETH) to adjust the way it manages different resources, potentially increasing performance without compromising security. Technically, it reflects the maturation of the Ethereum (ETH) ecosystem and its use.