$ETH Fees Plummet to 20-Month Low Amidst Market Downturn

Most gas costs are priced in Gwei, which is a small denomination of ETH. 1 $ETH equals 1 billion Gwei.

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The average transaction fee on the Ethereum blockchain fell down to $2.77 per transaction/0.0024 ETH – a number not seen in 20 months.

On Ethereum, the transaction fee required to use the network is referred to as the gas fee (or gas price). Ethereum’s native coin is ether ($ETH) and transaction fees are paid using $ETH.

Most gas costs are priced in Gwei, which is a small denomination of ETH. 1 $ETH equals 1 billion Gwei.

Gas is used to pay for:

  • ETH transactions
  • Token minting
  • Executing smart contracts
  • Powering decentralized applications (dApps)

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SEE ALSO: The Second of the 3 Public Ethereum Testnets, Sepolia, Transitions to PoS Ahead of Full Merge

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As you can see from this chart by bitinfocharts, the average transaction fees have dropped with the last big hike on May 1 2022.

Based on the chart, May 1 2022 recorded the highest gas cost of $196.638 while for nearly 2 years before that date, between January 2021 and May 2022, the average gas fee required by the Ethereum network was roughly $40.

Here are the average transaction fees over the last 5 months:

  • July 4, 2022 – $2.77
  • June 1, 2022 – $9.631
  • May 1, 2022 – $196.638
  • April 1, 2022 – $19.426
  • March 1, 2022 – $15.431
  • February 1, 2022 – $35.938
  • January 1, 2022 – $25.797

Still, as you can see from this chart by Etherscan, the number of daily transactions have remained high, with transactions totaling 1, 151, 999 on July 4 2022.

In fact, the network has consistently processed 1 million daily transactions for the past 2 years.

Reports are however correlating the drop in price with plummeting NFT sales as the NFT ecosystem recorded its worst performance of the year in June 2022.

In June 2022, the total number of daily NFT sales fell to roughly 19, 000 with an estimated value of $13.8 million.

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RECOMMENDED READING: The Oldest Ethereum Testnet, Ropsten, Transitions to PoS Ahead of Full Merge

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