On May 11, gas fees on the Ethereum blockchain dropped to 6 Gwei. The last time the indicator was at this level was in January 2020.
With these values, a coin swap would cost an average of $6.2, selling an NFT would cost about $10.5, borrowing would cost $5.7, and a cross-chain transfer would cost $2.
A decrease in network fees began to occur after the launch of the Dencun hard fork. One of the main components of the upgrade was EIP-4844. It implemented the Proto-Danksharding option, designed to scale by creating a new type of transaction for large binary data arrays (BLOBs).
This made it possible to significantly reduce commissions in the L2 ecosystem networks, especially those based on Rollups technology.
Martin Koppelmann, co-founder of GnosisDAO, drew attention to the record low gas fees on Ethereum.
Gas price volatility highlights the difficulty in estimating and forecasting demand for Ethereum. According to Ultra Sound Money, after the hard fork, the burning rate on the network slowed down, and in early April, the market supply of the coin began to increase.
Over the past 24 hours, 716 ETH were burned on the network, and 2,526 ETH were issued—the supply of the asset increased by 1,810 ETH.
The reduction in gas fees had a rather negative impact on the price of Ethereum, coupled with the stagnation of the rest of the market. At the time of writing, ETH is trading at $2,900, having lost 4.2% in 24 hours.
Previously, CryptoQuant analysts noted that Dencun made Ethereum inflationary again, potentially threatening the narrative of Ether as “ultra-reliable” money.
Let us recall that at the end of April, Santiment experts pointed to a decrease in transaction fees on the network to a six-month minimum ($1.12), which foreshadows the approach of the altseason.