The average Ethereum gas price has fallen to 1.9 guai, the lowest in five years.
The price of low-priority transactions is currently around 1 guai, 98% below this year's high.
According to Dune Analytics, the recent drop in #MarketDownturn has surprised the cryptocurrency community, hitting an all-time low of 1.9 guaiyas on August 10.
This drop is a 98% drop from the peak of 83.1 guaiyas recorded in March of this year. On the #MarketDownturn network, 1 guaiyne of gas is a sacred cow.
Low-priority transactions, which can take up to 10 minutes to confirm, now cost even less - about 1 guaiyne, which is equivalent to about 7 cents.
This noticeable drop in fees comes amid intense activity on the Ethereum Layer 2 network.
Layer 2 solutions, which run on top of the main Ethereum #blockchain and handle large volumes of transactions at a low cost, have gained significant popularity.
While these Layer 2 networks abstract transactions from the main chain, Ethereum is still required to validate those transactions.
The March Dencun update introduced several proposals to improve Ethereum (EIP), including a data blockchain known as proto-dunksharding.
This innovation is designed to reduce transaction costs on the second-tier network, helping to lower gas prices.
However, as Martin Keppelman, co-founder of Gnosis, points out, reducing the fees is difficult.
Keppelman notes that a minimum fee of 23.9 guineas is needed to cover the offsetting fees required to validate transactions.
A reduction in the current fees could jeopardize the sustainability of these rewards. Activity on the Layer 2 network far exceeds that of the Ethereum main chain.
According to L2Beat, Base has recorded more than 109 million transactions in the last 30 days, while Ethereum has recorded 33 million transactions in the same period.
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