Ethereum Transaction Fees Fall To Levels Not Seen Since Late 2022
Ethereum’s total daily transaction fees hit an eight-month low after it plunged to 1,719 ETH approximately $2.1 million on Aug 27.
The recent decline in total gas fees can be attributed to low network activity and the rise of layer 2 scaling solutions.
According to data from on-chain analytics firms CryptoQuant and IntoTheBlock, the second-largest cryptocurrency, became the cheapest since Dec 26.
The bearish market outlook plays a significant role in the sharp decline in gas fees. Reduced activity around decentralized finance solutions will lead to low gas fees while the reverse often leads to network congestion and skyrocketing fees.
Daily transaction fees on Ethereum are also down 83% from 16,720 to 1,719 ETH per year-to-date data since May 5. Despite the popularity of friends.tech launched on Aug 10, fees remain lower pointing to the importance of scaling solutions.
Friend.tech has gained massive traction with over 100,000 users And 2 million raised in revenue in its first month of operation signaling that the era of network congestion is now in the past.
David Lawant, Falcon X head of research noted that the reduced fees now recorded across the network are in contrast with the times CryptoKitties where new projects typically clogged the network for long periods.
"Ethereum L1 fees since friends.tech launched on August 10 are 25% lower than the average for the year until then, which is in stark contrast to the times when the success of early NFT application CryptoKitties or the latest Yuga Labs NFT drop would commonly temporarily clog the Ethereum network.”
The Ethereum network has come a long way in terms of development. Being at the forefront of smart contract development, the blockchain hosts the bulk of decentralized
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