As Layer 2 (l2) scaling solutions gain traction and increase activity, average transaction fees on the Ethereum network have hit a record low.
According to Ultrasound.money data, the average gas price dropped to 4.81 Gwei – the lowest since the network completed The Merge event in 2022. The drop was due to increased activity across the networks L2 after Dencun upgrade – which reduces transaction fees on L2 by up to 10 times, making transactions on the base layer less attractive.
Blockchain analytics platform IntoTheBlock emphasizes:
“More and more transactions are being settled on layer 2 of Ethereum. Last month, the three largest L2s achieved a record 82% of all Ethereum transactions.”
Ethereum layer 2 transaction market share| Source: IntoTheBlock
Furthermore, the number of transactions on Arbitrum increased strongly, reaching more than 2 million daily transactions on May 8 – beating the early March average of 1 million.
L2beats data indicates that Base and Arbitrum averaged 30 and 20 transactions per second, respectively, while Ethereum performed 13 transactions per second during the same period.
ETH becomes inflationary
Meanwhile, CryptoQuant analysis revealed that ETH has entered an inflationary state following the Dencun upgrade, leading to a decrease in gas fees and burning rates.
“Since The Merge, Ethereum appears to be on track with the “ultra-sound money” narrative, showing a slight decrease in total ETH supply. However, the Dencun upgrade caused transaction fees and ETH burn rates to decrease, leading to an increase in supply. As such, Ethereum is no longer deflationary and may have lost its “ultra-sound money” properties unless there is an increase in activity on the network.”
“Ultra-sound money” is a term used to describe a currency or financial asset that is stable and reliable in retaining value over time, similar to traditional fiat money but with higher level of safety and sustainability.
“Ultra-sound money” has become the nickname associated with Ethereum after The Merge upgrade, changing the consensus mechanism from Proof of work (PoW) to Proof of stake (PoS), cutting the issuance rate by 90%. New ETH.
Source: CryptoQuant
Notably, UltraSound.Money data shows the daily ETH burn yesterday was 519 ETH, marking a record low for the network.
Source: https://tapchibitcoin.io/phi- Giao-dich-ethereum-cham-muc-thap-ky-luc-khi-cac-mang-layer-2-thu-hut-hoat-dong.html
