PANews reported on August 18 that according to Coindesk, Bitget Research Chief Analyst Ryan Lee said that Ethereum Gas fees hit a record low, which is a historically bullish signal for ETH. "Every time ETH's gas fee hits the bottom, it often indicates that the mid-term price has bottomed out. ETH prices tend to rebound strongly after this cycle, and when this moment coincides with the interest rate cut cycle, the market's wealth effect is full of possibilities."
Earlier this week, gas fees dropped to 0.6 gwei (gas unit), with low-priority transactions costing just 1 gwei or less, a rarity in recent years. This is a drop of more than 95% from the 83.1 gwei level during a surge in network activity in March.
Ryan Lee explained: "Ethereum's gas fees have fallen to their lowest level in five years, which can be attributed to the meme season and the migration of Dapp interactions to other faster and cheaper blockchains such as Solana and Layer 2, as well as the long-awaited Dencun upgrade, which improves network efficiency and thus reduces gas fees." At the same time, the reduction in the number of Ether (ETH) destroyed due to lower fees means that the supply of the token has begun to increase. Data shows that the total supply of Ethereum has increased by nearly 16,000 ETH in the past week, driving the supply growth of 0.7% this year.
