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 Gas Fees Drop To Record Low As Market Downturn Continues

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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