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Ethereum’s average gas fee fell below 1 Gwei last weekend, the lowest level in years

CointimeCointime2024/08/12 02:24
By:Cointime

According to BeInCrypto, due to the increasing transaction volume on the Ethereum network's Layer2 network, Ethereum's gas fees have dropped to their lowest level in years. According to Etherscan data, the average gas fee on the Ethereum mainnet fell below 1 Gwei last weekend, but has since rebounded to around 2 Gwei, or approximately $0.06. Meanwhile, some transactions may still incur fees as high as 5 Gwei, or approximately $0.22. This fee reduction is also evident in Ethereum's Layer2 scaling solutions. Gasfees.io data shows that the average fees for Optimism, Base, Arbitrum, and Linea are currently less than $0.01.Market observers suggest that the decline in gas fees may be related to the introduction of blob-based transactions with the Dencun upgrade in March. This upgrade significantly increased Layer2 transaction volume due to the lower fees. As background, L2beats data shows that Layer2 networks such as Base and Arbitrum now process more transactions per second than Ethereum itself. In the past day, Base processed 39.80 transactions per second (TPS), while Arbitrum processed 17.28 TPS. In contrast, Ethereum processed approximately 12.17 TPS.These trends have prompted some stakeholders to advocate for increased Layer1 activity. Gnosis co-founder Martin Koppelman suggests that even with lower fees, increasing gas limits may be a strategic move to increase base layer usage. On the other hand, the fee reduction has raised concerns about network inflation. As ETH burning decreases, the network's supply has been increasing. According to Ultrasound.money data, only 120 ETH were burned in the past day, while the supply increased by more than 2,500 ETH. This imbalance is offsetting the previously observed trend of deflation.

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