Transaction fees on the Ethereum network have dropped more than 95% from 83.1 gwei in March, when the network saw a surge in activity.
According to one analyst, the sharp drop in transaction fees could be a positive sign for the value of ETH on the network, based on historical data. “Whenever ETH gas fees drop to their lowest levels, it is usually a sign that ETH has bottomed in the mid-term,” Ryan Lee, chief analyst at Bitget Research, said in a note to CoinDesk on Friday. “ETH prices typically recover strongly after this cycle, and when this recovery coincides with a rate cut cycle, the market has a huge upside potential.”
Gas is the cost users pay to conduct transactions on the network. This week, transaction fees dropped to 0.6 gwei (a unit of gas), with low-priority transactions costing 1 gwei or less — a rarity in recent years. That’s down more than 95% from 83.1 gwei in March, when the network saw a surge in activity.
Ryan Lee suggests that this decline could be due to reduced demand for Ethereum block space and users moving to applications on other blockchains.
Ethereum gas price trend. (@Hildobby/Dune)
“The drop in Ethereum gas prices to a five-year low can be explained by the migration of Dapp and memecoin interactions to faster and cheaper blockchains like Solana and Layer 2, coupled with the long-awaited Dencun upgrade, which improves network performance and reduces gas fees,” he explained.
Dencun is the name of two important updates from March that changed the way transactions are processed and validated on the Ethereum network.
Since July, the Solana-based Pump.fun app has raked in more transaction fees than the entire Ethereum network in some 24-hour periods, most recently on August 13.
Additionally, the decrease in ETH burned due to lower fees also means that the token supply is starting to increase again.
Data shows that nearly 16,000 ETH, or about $42 million at current prices, was added to Ether's total supply over the past week, leaving the supply expected to increase by 0.7% this year.
Source: https://tapchibitcoin.io/phi-gas-ethereum-giam-ky-luc-bao-hieu-tin-hieu-tang-gia-cho-eth.html
