Ethereum Transaction Costs Hit Historic Lows: What Does This Mean For ETH?
20 Agosto 2024 - 7:00AM
NEWSBTC
According to recent insights from a CryptoQuant analyst, Ethereum’s
daily mean gas price has reached an all-time low, falling to
roughly 2.9 Gwei. This decline in gas prices correlates with a
significant drop in daily transaction fees, which now average
merely $0.85, marking a multi-year low for the network. The analyst
reported that this cost reduction comes amid a stable or
slightly increasing daily transaction volume compared to the
past two years, suggesting that lower fees haven’t deterred user
activity on the network. Despite drastically reduced costs, a
sustained number of transactions indicates strong network health
and continued user engagement, even as financial barriers lessen.
Related Reading: Is Ethereum Poised for Inflation? Supply Reaches
New High as Staking Takes Off Reason Behind The Plunge In
Transaction Costs Discussing the reason behind the historic lows in
the Ethereum fee structure, the CryptoQuant analyst under the
pseudonym ‘EgyHash’ attributed it to the Dencun upgrade implemented
on March 13 this year. This update introduced ‘Blobs’—a novel
transaction type designed to economize data publishing for Layer 2
networks on Ethereum. Networks such as Arbitrum, Base, and Optimism
can post their data on Ethereum at substantially reduced fees,
potentially eliminating costs by up to 100%. This enhancement has
directly contributed to the lowered gas prices and has made
Ethereum a more accessible platform for a broader user base, the
analyst disclosed. #Ethereum Gas Price Hits New All-Time Low
“Despite the approval of Ethereum ETFs, the price of $ETH has been
struggling since the Dencun upgrade. ETH supply has increased by
more than 197,000 ETH, and its price has fallen by 35%.” – By
@EgyHashX Link 👇https://t.co/GZ1Dt0NStv pic.twitter.com/PtbjWGyUzc
— CryptoQuant.com (@cryptoquant_com) August 19, 2024 However,
EgyHash also highlighted that although lower transaction costs
benefit users by making the network more affordable for various
applications, they pose a nuanced challenge for investors. EgyHash
noted in the post: While low fees are beneficial for users, they
might not be advantageous for investors, especially given the
substantial portion of Ethereum’s usage that is being offloaded to
its Layer 2 networks, and the potential problems this could cause,
such as user and liquidity fragmentation. Related Reading: Will
Ethereum Reach Over $3,000 In September? Analyst Bets On 80% Odds
Ethereum Market Performance So far, ETH has been unable to maintain
its price above notable price marks. Over the past week, ETH has
plunged by 4.2%–this bearish performance has brought the asset to
currently trade for $2,591 at the time of writing. As highlighted
by EgyHash, this struggle for the ETH’s price to hit new heights
has been around since the Dencun upgrade and has continued despite
the recent approval of spot Ethereum exchange-traded funds (ETFs).
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