Okay, every indication shows Ethereum has taken its foot off its gas pedals. Traders can finally take a sigh of relief as the second most valuable cryptocurrency sees a welcomed slump in the value of its transaction fees.
The Ethereum blockchain is notorious for its high gas fees, which has led to the emergence of alternative networks like the BNB network. These networks provide crypto enthusiasts with a way to make transactions without incurring the hefty Ethereum gas fees. During Ethereum airdrops, some enthusiasts are forced to abandon them due to the exorbitant fees they would have to pay.
Seeing the Ethereum gas fee price decrease significantly was a pleasant surprise. Santiment shared the update on Twitter, emphasizing the massive reduction in Ethereum gas fees.
The charts shown on the post on Twitter displayed some of the fluctuations seen in the gas fees. As of July 5th, the gas fees increased to a massive $7 before they decreased again. This decrease in the gas fees saw it fluctuate to $2.45.
More Details About the Drop in Gas Fees
"Following a brief stint where #Ethereum's network became rather pricey at $7.40 per transaction, the average fee has dropped back down to $2.45. Over the past 24 hours, $ETH and wrapped $WETH are getting the lion's share of these fees," Santiment said on Twitter.
🤑 Following a brief stint where #Ethereum's network became rather pricey at $7.40 per transaction, the average fee has dropped back down to $2.45. Over the past 24 hours, $ETH and wrapped $WETH are getting the lion's share of these fees. https://t.co/0br2LcwWWR pic.twitter.com/odoQWGcq0r— Santiment (@santimentfeed) July 10, 2023
Before the charts displayed for July, Ethereum gas fees saw a massive spike two months ago in May. The gas fees increased to a whopping $14 at some point in that month. Skyrocketing to about $14 was not expected from the cryptocurrency.
In the past 24 hours, several tokens on the Ethereum network have primarily contributed to the price surge. Transactions linked to the Wrapped Ethereum (WETH) and the native Ethereum token (ETH) are the two major contributors to the gas fees recorded on the Ethereum network.
At some point in the past 24 hours, the price of the Ethereum gas fees even dropped to a whopping $1.93. This is something that is not seen often on the Ethereum network. However, it is important to note that the lowest gas fee recorded on the network this year was sometime in February. The Ethereum gas fees at that point were around $1.7. In July 2022, Ethereum gas fees dropped to about $1.57, the lowest since 2020.
Steady Flow of Transactions on the Ethereum Network
The drop in Ethereum gas fees isn't because of decreased activity on the platform. Data from different sources show that the transactions on the network have maintained the normal range.
According to data provided by DefiLlama, transactions on the Ethereum network have been within the normal range. Even if there's a slight decline, it is not noticeable or significant.
Users have kept things quite steady on the chart for the number of transactions, and there's no sign of panic yet. The number of daily transactions on the Ethereum network is still more than 1 million. At the time of writing, the Ethereum token price has remained at approximately $1884.