Ethereum’s Average Gas Fee Drops Below $1.57, The Lowest Since 2020

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Ethereum’s average gas fees drop below $1.57 which is the lowest level since 2020 as we can see more in today’s Ethereum news.

For two years between 2021 and 2022, the average gas fee required by the network was about $40 and in May this year, the highest average daily gas cost was recorded at $196. The Ethereum ecosystem’s biggest roadblock to mainstream dominance is attributed often to the high transaction fees or gas fees required to complete a transaction however with Ethereum’s average gas fees dropping, the narrative is about to change.

The average transaction fee on the ETH blockchain dropped to $1.57 which is a number only seen in December 2020. However, starting in January 2021, the gas fees surged owing to the hype around NFTs and DEFI as a promising bull market. For two years, the average gas fee required by the Ethereum network was about $40 with May 1 of 2022 recording the highest gas cost of $196 as the data from BitInfoCharts show.

Ethereum average transaction fee YTD. Source BitInfoCharts

Supporting the sudden drop in gas prices, the reports show that the daily NFT sales also dropped to a one-year low and the NFT ecosystem recorded the worst performance of the year in June with the total number of daily sales dropping to 19,000 with an estimated value of $13.8 million. In November 2021, the investors reproted some outrageous gas fees and the ETH co-founder Vitalik Buterin published a decreased cost and cap proposal to reduce the levels of strain on the network. Buterin proposed a short-term solution to cut rollup costs by launching a call data limit per bock to low gas costs.

daily NFT
Number of daily NFT sales between June 2021 – June 2022. Source NonFungible

Ethereum liquditiy provider XCarnival recovered 1467 ETH a day after suffering an exploit that drained 3087 ETH that was worth $3.8 million. Blockchain investigator Peckshield explained:

“The hack is made possible by allowing a withdrawn pledged NFT to be still used as the collateral, which is then exploited by the hacker to drain assets from the pool.”

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