📊Ethereum Gas Fees Hit a New Low, Analysts Are Bullish on ETH's Prospects! 🚀
📉Ethereum's Gas Fees Recently Dropped to a Five-Year Low, Which Could Be Good News for ETH. Analyst Ryan Lee said that historical data shows that low Gas Fees often herald mid-term price bottoms. And when this moment coincides with a rate cut cycle, the market's wealth effect may be evident.
🔍He said that the drop in Gas Fees could be related to users turning to more efficient, low-cost blockchains such as Solana and Layer 2. At the same time, Ethereum's Dencun upgrade also played an important role in reducing fees by improving network efficiency.
📊 In early March, Ethereum's network activity was super hot, with Gas Fees once reaching 83.1 gwei. But with two major updates involved in the Dencun upgrade in mid-March, Gas Fees dropped to 0.6 gwei earlier this week, and fees dropped by more than 95%, which is a dramatic change!
💰Moreover, because of the lower gas fee, the number of ETH destroyed has also decreased, which means that the supply of ETH has begun to rise. In the past week, the total supply of ETH has increased by more than 16,200, which is worth more than $42 million at market prices.
Viewpoint:
🤔The decline in Ethereum gas fees may be a positive sign for ETH. This low fee may indicate a mid-term bottom for ETH prices, especially in the context of the current interest rate cut cycle, which may stimulate the wealth effect of the market. In addition, as the efficiency of the Ethereum network improves and the gas fee decreases, more users and developers may be attracted to return to Ethereum, thereby increasing the demand for ETH.
🌐Even as users and applications migrate to faster and cheaper blockchains such as Solana and Layer 2, Ethereum's Dencun upgrade has demonstrated its ability to adapt to market changes and improve user experience.
📊At the same time, as gas fees decrease, ETH destruction decreases and supply increases, this may have a short-term impact on prices. However, in the long run, if demand continues to grow, ETH prices still have room to rise.
💬Do you think that Ethereum’s Dencun upgrade will have a decisive impact on the market? Will the drop in gas fees really drive up ETH prices? Feel free to share your views in the comments section!
