Ethereum Gas Price Drops Sharply
The median gas price on the Ethereum mainnet fell below 3 gwei on Saturday, the first time this level has been reached since 2020, according to data from The Block.
There are two main reasons for this phenomenon. The first reason is that most of the transaction activity in the Ethereum ecosystem has migrated from the Ethereum mainnet to multiple L2 networks, leaving Ethereum with significantly less on-chain transaction volume than in the past. Another reason is that the "blobs" introduced after the Dencun upgrade of the Ethereum mainnet on March 13 did reduce the cost of sending transactions on the Layer 2 network, and the median Gas Price has been steadily declining since then.
Just a year ago, the median Ethereum gas price was around 15 to 20 gwei, a significant difference from Saturday’s lows. According to dashboard data provided by user @hildobby on Dune Analytics, the highest Gas Price in 2024 occurred on March 5. The median gas price for the day reached 83 gwei.
Due to the significant reduction in Gas Price, Ethereum's burn rate has also dropped to its lowest level in 12 months. According to data from ultrasound.money, Ethereum is currently slightly inflationary due to a low burn rate, with a seven-day average supply growth rate of 0.56% per year.
Bitcoin miner income is also at a low level
At the same time, affected by the halving of block rewards and the ebb of inscription hype, Bitcoin miner income has reached an all-time low in the past two months.
Besides the halving, another possible reason for the low margins is the lower number of new wallets entering the Bitcoin ecosystem; the seven-day average number of new Bitcoin wallets is currently at its lowest level since 2018, the first time it has been this low in six years .
This article Ethereum Gas Price Slumps, Hits Lowest Level Since 2020 appeared first on Zombit.
