According to data from Etherscan, the Ethereum network’s average gas price hit a significant low, dropping to 6 Gwei. This marks the lowest point since January 2020. This decline in gas fees translates into remarkably cheap on-chain operations for Ethereum users.
Martin Köppelmann, co-founder of Gnosis, commented on this trend, questioning if it’s a new norm. “Ethereum base fee is at record lows. The blob fee still has not even entered price discovery (with a very short exception) and thus is at absolutely 0. Is this the new normal, or will we see periods of +100 GWEI again, and by what demand will they be driven?” Köppelmann stated.
Recent observations attribute the decline in gas fees to the combined effects of the Cancun-Deneb upgrade and a downturn in on-chain activity within the Ethereum network.
Ethereum Metrics Shift: Lower Fees, Vitalik’s Proposal
As cryptocurrency markets experience relative calm and a modest uptick, various usage metrics have decreased. Reports indicate that Ethereum’s supply has even lost its deflationary status, influenced by these factors.
As a result, users can now execute asset swaps on ETH for a mere $5 commission. Cross-chain bridging services cost a nominal $2 fee, and minting non-fungible tokens (NFTs) on Ethereum comes at an accessible $9 cost.
The USD gas fees recorded today are the lowest in the past six months, with the last comparable instance in November 2023. Alongside this, the cost of Ethereum transactions decreased by 93%, from $30 to $2, according to insights from BitInfoCharts.
On May 9th, Vitalik Buterin, Ethereum’s founder, proposed substantially upgrading the platform’s gas mechanism. This upgrade unveils the concept of multi-dimensional gas and provides Ethereum with enhanced flexibility in managing various resources.
The proposal also predicts an improvement in Ethereum’s throughput capabilities without compromising safety, signifying the evolution of the Ethereum ecosystem and its increasing utilization.
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