- Ethereum’s average gas price dropped to just below 3 gwei on Saturday, a level unseen since 2020.
- This significant reduction may indicate that Ethereum Layer-2 networks can help in mitigating transaction costs.
- “Ethereum’s declining gas fees could signify a broader trend in the network’s activity,” noted a prominent analyst.
Discover how Ethereum’s dropping gas prices and Bitcoin’s mining revenue challenges shape the future of cryptocurrency markets.
Ethereum’s Network Activity Shows a Declining Trend
Just a year ago, the average gas price hovered around 15 to 20 gwei, marking a substantial increase compared to Saturday’s levels. Data from the Dune Analytics dashboard highlights that the highest gas prices of 2024 were recorded in March, with the peak single-day average hitting 83 gwei on March 5th.
The implementation of the Dencun upgrade on March 13th resulted in a consistent decrease in average gas prices, particularly noticeable in Layer-2 networks which benefited from reduced transaction costs.
According to The Block, the low gas prices have also driven Ethereum’s burn rate to its lowest in twelve months. Ultrason.money reports that with the diminished burn rate, Ethereum is experiencing slight inflation, with a seven-day average supply increase of 0.56% per year.
Challenges in Bitcoin Mining Revenue
In the shadow of the recent halving, Bitcoin miners have seen their revenue, calculated per terahash per second (TH/s), plunge to record lows over the past two months. One potential explanation for this decline, beyond the halving itself, could be the stagnating inflow of new wallets in the Bitcoin ecosystem, currently at its lowest seven-day average since 2018.
Nevertheless, some cryptocurrency mining firms like CleanSpark continue to outperform, with CleanSpark’s performance outstripping Bitcoin’s price trends. The Block reports that Bitfarms and Core Scientific have also shown stronger performance year-to-date compared to Bitcoin’s price, though smaller mining operations are struggling.
Former U.S. President Donald Trump recently held a meeting with representatives from the Bitcoin mining industry, pledging support for miners should he win the presidential elections in November.
Conclusion
Recent developments in Ethereum’s gas prices and Bitcoin miners’ revenue highlight the dynamic and ever-changing landscape of the cryptocurrency market. With Ethereum showing signs of potential cost-efficiencies and Bitcoin miners facing revenue challenges, the crypto space continues to evolve rapidly, offering both risks and opportunities. Investors should stay informed and conduct their own research to navigate these changes effectively.
