Analysis: Ethereum Gas Fee Drops to Five-Year Low, May Indicate ETH Price Bottom in the Medium Term
Ryan Lee, Chief Analyst at Research, said recently: "Every time ETH's Gas Fee drops to the bottom, it often means that the price has bottomed in the medium term. After this cycle, ETH prices tend to rebound strongly, and when this moment coincides with the interest rate cut cycle, the wealth effect of the market is full of possibilities."
Lee said that Ethereum's Gas Fee dropped to a five-year low, which can be attributed to the popularity of Meme and the migration of DApp interactive users to other faster and cheaper blockchains such as Solana and Layer 2. In addition, the Dencun upgrade also improves network efficiency, thereby reducing Gas Fees.
At the same time, due to lower fees, ETH destruction has decreased, which means that its supply has begun to increase. $BTC $ETH