#ChartoftheDay According to data on Etherscan, Ethereum’s gas prices have fallen to the lowest level in five years, with the average gas price at 1 gwei for three consecutive days. Earlier this week, gas prices even fell to as low as 0.6 gwei. In response, Etherscan added three decimal points to the gas tracker to capture the current gas price levels accurately.

Since the #Ethereum Dencun update, users have been migrating to faster and cheaper blockchains, such as L2s and Solana, for more economical gas fees. Compared to March, when gas prices stayed at around 83.1 gwei, Ethereum gas prices dropped by over 95%. Lower transaction fees reduce Ether's consumption, resulting in Ether going back to inflation. The net supply increased by about 16,000 $ETH tokens in the past week. The current annual growth rate stands at 0.7%.

If we reference the past cycles, lower Ethereum gas fees typically mean lower user activity on-chain, which is a sign of the market bottoming and could signal ETH's bullish performance afterward. However, despite expectations of inflows from traditional financial institutions to BTC and ETH bitcoins and an upcoming easing cycle from the US Federal Reserve in September, #BTC☀ and #ETH prices are performing poorly, continuing to defy the bullish predictions.

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