- Ethereum’s average gas price has plunged to 6 Gwei, the lowest since January 2020, making on-chain operations remarkably affordable for users.
- Gnosis co-founder, Martin Köppelmann, questions the sustainability of this trend, wondering if we will see periods of +100 GWEI again and what demand will drive them.
- The drop in gas fees is attributed to the Cancun-Deneb upgrade and a downturn in on-chain activity within the Ethereum network.
Ethereum’s gas price hits a record low since January 2020, leading to cheaper on-chain operations. Experts attribute this to the Cancun-Deneb upgrade and reduced on-chain activity, but the sustainability of this trend is in question.
Ethereum Gas Price Plunges to Record Low
Ethereum network has seen a significant decline in its intraday average gas price, dropping to 6 Gwei. This is the lowest it has been since January 2020, according to Etherscan metrics. This drop translates into remarkably affordable on-chain operations for Ethereum users.
Questioning the Sustainability of the Trend
Martin Köppelmann, co-founder of Gnosis, has raised questions about the ongoing trend. He wonders if this is the new normal or if we will see periods of +100 GWEI again and what demand will drive them.
Reasons Behind the Drop in Gas Fees
The decline in gas fees is attributed to the combined effects of the Cancun-Deneb upgrade and a downturn in on-chain activity within the Ethereum network. With the cryptocurrency markets experiencing relative calm and a modest uptick, various usage metrics have decreased accordingly. Reports also indicate that Ethereum’s supply has relinquished its deflationary status, influenced by these factors.
Impact on Users
As a result of these developments, users can now execute asset swaps on Ethereum for a mere $5 commission. Cross-chain bridging services are available at a nominal $2 fee. The cost of minting non-fungible tokens (NFTs) on Ethereum is now only $9. The USD gas fees recorded today are the lowest observed in the past six months, with the last comparable instance recorded in November 2023. Alongside this, the cost of Ethereum transactions decreased by 93%, from $30 to $2, according to insights from BitInfoCharts.
Conclusion
The drop in Ethereum’s gas price to a record low since January 2020 has made on-chain operations more affordable for users. However, the sustainability of this trend is in question. The decline is attributed to the Cancun-Deneb upgrade and reduced on-chain activity, but it remains to be seen if these conditions will persist.
