Bitrabo Editorial
The Ethereum gas fees have drastically decreased as the cryptocurrency’s price drops, with the base fee hitting an all-time low of 0.82 Gwei, signaling reduced activity on the network.
Significant Decrease in Ethereum Gas Fees
Data from Ultra Sound Money shows a continuous decline in Ethereum’s base gas fee, reaching 0.82 Gwei, the lowest in years. The drop is attributed to fewer large transactions on the network, as indicated by IntoTheBlock data showing a sharp decrease in transactions above $100,000.
The lowered gas fees have led to a decrease in ETH being burned. Only 3,698 ETH were burned in the past week compared to 18,065 new ETH issued, resulting in a net increase in the circulating supply of Ethereum.
Importance of Gas Fees
Gas fees on Ethereum are closely linked to network activity and the ETH supply. Higher transaction volume increases demand on validators, leading to higher gas fees for faster processing. Elevated gas fees historically indicate increased interest and bullish market trends.
During periods of low activity, like the current scenario, reduced demand results in lower gas fees. While this benefits users looking to save on costs, it reflects a sluggish network. Ethereum is currently trading at $2,585, down by 3.58% in the last 24 hours.