Ethereum Transaction Costs Hit Historic Lows: What Does This Mean For ETH?

According to recent insights from a CryptoQuant analyst, Ethereum’s daily mean gas price has reached an all-time low, falling to roughly 2.9 Gwei. This decline in gas prices correlates with a significant drop in daily transaction fees, which now average merely $0.85, marking a multi-year low for the network. The analyst reported that this cost reduction comes amid a stable or slightly increasing daily transaction volume compared to the past two years, suggesting that lower fees haven’t deterred user activity on the network. Despite drastically reduced costs, a sustained number of transactions indicates strong network health and continued user engagement, even as financial barriers lessen. Related Reading: Is Ethereum Poised for Inflation? Supply Reaches New High as Staking Takes Off Reason Behind The Plunge In Transaction Costs Discussing the reason behind the historic lows in the Ethereum fee structure, the CryptoQuant analyst under the pseudonym ‘EgyHash’ attributed it to the Dencun upgrade implemented on March 13 this year. This update introduced ‘Blobs’—a novel transaction type designed to economize data publishing for Layer 2 networks on Ethereum. Networks such as Arbitrum, Base, and Optimism can post their data on Ethereum at substantially reduced fees, potentially eliminating costs by up to 100%. This enhancement has directly contributed to the lowered gas prices and has made Ethereum a more accessible platform for a broader user base, the analyst disclosed. #Ethereum Gas Price Hits New All-Time Low “Despite the approval of Ethereum ETFs, the price of $ETH has been struggling since the Dencun upgrade. ETH supply has increased by more than 197,000 ETH, and its price has fallen by 35%.” – By @EgyHashX Link

Aug 20, 2024 - 10:00

Ethereum Transaction Costs Hit Historic Lows: What Does This Mean For ETH?

According to recent insights from a CryptoQuant analyst, Ethereum’s daily mean gas price has reached an all-time low, falling to roughly 2.9 Gwei. This decline in gas prices correlates with a significant drop in daily transaction fees, which now average merely $0.85, marking a multi-year low for the network.

The analyst reported that this cost reduction comes amid a stable or slightly increasing daily transaction volume compared to the past two years, suggesting that lower fees haven’t deterred user activity on the network. Ethereum gas price.

Despite drastically reduced costs, a sustained number of transactions indicates strong network health and continued user engagement, even as financial barriers lessen.

Reason Behind The Plunge In Transaction Costs

Discussing the reason behind the historic lows in the Ethereum fee structure, the CryptoQuant analyst under the pseudonym ‘EgyHash’ attributed it to the Dencun upgrade implemented on March 13 this year.

This update introduced ‘Blobs’—a novel transaction type designed to economize data publishing for Layer 2 networks on Ethereum. Networks such as Arbitrum, Base, and Optimism can post their data on Ethereum at substantially reduced fees, potentially eliminating costs by up to 100%.

This enhancement has directly contributed to the lowered gas prices and has made Ethereum a more accessible platform for a broader user base, the analyst disclosed.

#Ethereum Gas Price Hits New All-Time Low
“Despite the approval of Ethereum ETFs, the price of $ETH has been struggling since the Dencun upgrade. ETH supply has increased by more than 197,000 ETH, and its price has fallen by 35%.” – By @EgyHashX
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