Ethereum (ETH) Gas Fees at Multi-Month Lows, Data Says
05/10/2024 18:17
USD-denominated Ether fees hit six-month low, while other metrics at lowest since 2020: What happened?
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Thanks to the introduction of blobs in post-Dencun Ethereum (ETH), network usage becomes more cost-optimized than ever before. Developers are wondering whether the gas price will surge once market activity recovers.
Ethereum (ETH) average gas price plunges to 6 Gwei
Today, according to automated tracking services, the average gas fee on the Ethereum (ETH) network reached 6 Gwei. This is the lowest level since January 2020, Etherscan data says. As a result, all on-chain operations in Ethereum (ETH) became extremely cheap for accounts.
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.
— Martin Köppelmann 🦉💳 (@koeppelmann) May 10, 2024
Is this the new normal or will we see periods of +100 GWEI again and by what demand will they be driven?
Per Etherscan, users can swap assets with a $5 commission, while cross-chain bridging is available at $2. For $9, users can mint non-fungible token on Ethereum (ETH).
In terms of USD-demominated gas fees, today's prices are the lowest in six months: last time the USD price for ETH gas was so low was in November 2023.
This dropdown should be attributed to both the effects of the Cancun-Deneb (Dencun) upgrade and the low on-chain activity on Ethereum (ETH). As crypto prices take a breath amid a rally, many usage metrics dropped in the last few days.
As covered by U.Today previously, the Ethereum (ETH) supply even lost its deflationary status due to a combination of these factors.
Ethereum (ETH) fees dropped by 15x post-Dencun
Since the activation of Dencun in mid-March 2024, USD-demoninated Ethereum (ETH) fee price dropped by 15x, from $30 to $2, BitInfoCharts says.
As U.Today reported yesterday, 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.