Back to News
Crypto

Ethereum Gas Drops to Record Levels

Ethereum gas fees fall to new lows as activity switches to L2s.
Ethereum Gas Drops to Record Levels

Ethereum's gas fees have plunged to record lows, falling below 1 gWei for days. This tendency, unusual even in bear markets, shows a dramatic shift in the network's dynamics.

Activity on Ethereum has plummeted dramatically. Fees for slow transactions have dropped as low as 0.57 gWei. This anomaly reflects recent scaling efforts and traffic shifts to Layer 2 solutions such as Arbitrum and Optimism.

Ethereum's low fees make it more accessible for DEX swaps and NFT trading. However, they have halted the burning of ETH, bringing inflation to 0.74%. At this rate, about 1M ETH may be minted per year. The idea to raise blob fees attempts to improve burning rates. This might improve L2 block space use while maintaining ETH's deflationary thesis.

Ethereum has seen massive value outflows. L2s have received $1.4B in the last three months. The network currently has $45B in locked value, down from a record of $65B in May. ETH's price has fallen to the $2.5K level. With a muted mood, a deeper fall might be on the way.

Sign up for our newsletter
Get the daily newsletter that helps thousands of investors understand the markets.
Thank you for subscribing!
Oops! Something went wrong while submitting the form.
Share
Read more news
View all →
Back to News
Text Link

Heading

This is some text inside of a div block.

Heading 1

Heading 2

Heading 3

Heading 4

Heading 5
Heading 6

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.

Block quote

Ordered list

  1. Item 1
  2. Item 2
  3. Item 3

Unordered list

  • Item A
  • Item B
  • Item C

Text link

Bold text

Emphasis

Superscript

Subscript

Tags
No items found.
Sign up for our newsletter
Get the daily newsletter that helps thousands of investors understand the markets.
Thank you for subscribing!
Oops! Something went wrong while submitting the form.
Share
Read more news
View all →
No items found.