Ethereum Gas Fees Drop To Record Low As Market Downturn Continues
Ethereum's gas fees have decreased hitting a 20-month low as the market downturn saw a sharp decline in user activity. the demand for block space remains high. the average transaction fee on Ethereum is just over $2.
Ethereum saw gas fees drop to as low as 69 cents on Saturday. This has been the lowest gas fee in 19 months as the market downturn has a visible effect on costs. The price pushed back up the following day rising to $1.57 or 0.0015 ETH. The decline can be attributed to a fall in the price of ETH and a drop in network activity.
According to Etherscan shows that the average fee to make a transaction on Ethereum is now 21 Gwel, which is equal to 0.0021 ETH. Right now ETH is trading at around $1100 which comes up to around $2.31
Furthermore, since the market's peak, there has been a steady decline in gas fees. Since the market peak in 2021. ETH has lost around 77% of its dollar value which has led to the dollar cost per transaction also falling significantly. The last time gas fees on Ethereum made their way below $2.50 at that time ETH was trading at $500
According to Etherscan data shows that there has been a decline in the average number of daily transactions as well. The rising adoption of Layer 2 solutions has a collective total value locked around $2.7 billion the network has consistently managed to process 1 million transactions over the past two years.
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