- Ethereum (ETH) has seen a significant drop in average gas prices, reaching a low of 6 Gwei, the lowest since January 2020.
- This drop in prices is attributed to the post-Dencun upgrade and a decrease in on-chain activity on the Ethereum network.
- Despite the low prices, developers are questioning whether prices will surge once market activity recovers.
Ethereum’s average gas price plunges to a record low, but developers question the sustainability of these low prices in the face of potential market recovery.
Ethereum (ETH) average gas price plunges to 6 Gwei
Automated tracking services have reported that the average gas fee on the Ethereum (ETH) network has reached 6 Gwei, marking the lowest level since January 2020 according to Etherscan data. This has made all on-chain operations in Ethereum (ETH) extremely cheap for accounts. Users can now swap assets with a $5 commission, while cross-chain bridging is available at $2. For $9, users can mint non-fungible tokens on Ethereum (ETH). These are the lowest USD-denominated gas fees in six months, with the last time the USD price for ETH gas being this low in November 2023.
Ethereum (ETH) fees dropped by 15x post-Dencun
Since the activation of the Dencun upgrade in mid-March 2024, the USD-denominated Ethereum (ETH) fee price has dropped by 15x, from $30 to $2, as per BitInfoCharts. Ethereum (ETH) founder Vitalik Buterin has already proposed the next radical upgrade for the gas mechanism. The concept of multi-dimensional gas is expected to allow Ethereum (ETH) to fine-tune how it manages different resources, potentially increasing throughput without risking safety. Technically, it is set to reflect the maturation of the Ethereum (ETH) ecosystem and its usage.
Conclusion
The significant drop in Ethereum’s gas prices can be attributed to the Dencun upgrade and a decrease in on-chain activity. However, the sustainability of these low prices is in question as developers anticipate a potential surge in prices with market recovery. The proposed upgrade by Ethereum’s founder could potentially increase throughput without risking safety, reflecting the maturation of the Ethereum ecosystem.
