CryptoQuant’s most recent research shows that the price of Ethereum gas has dropped to an all-time low. The daily average price of gas has dropped to just 2.9 Gwei, which means that users can now make transactions for a lot less.
At the same time, the average daily fee in USD has dropped to $0.85, which is the lowest level in many years. This has caused Ethereum’s burn rate to drop noticeably. Even though gas fees have gone down, Ethereum’s network traffic has stayed strong.
Compared to the same time last year, the average number of deals per day has stayed the same or even gone up a little. Users are still relying on Ethereum’s blockchain, even though transaction costs are going down, as shown by the steady number of transactions.
Ethereum Dencun Update
The Dencun update, which went live on ETH on March 13, 2024, is a big reason why gas costs have been going down lately. The update added “Blobs,” a brand-new type of transaction that makes it much cheaper for layer-2 networks like Arbitrum, Base, and Optimism to post data on ETH.
According to some estimates, fees could go down by as much as 100% for some transactions, which would lower the overall price of gas. Less expensive fees are beneficial for users, but they can be challenging for investors. Layer-2 networks are now receiving a significant portion of Ethereum’s transaction volume.
This makes people worry about how users and value might become spread out.More action is moving away from Ethereum’s main chain, which could change its long-term value. The price of gas has decreased, and Ethereum’s stock has increased.
According to the latest report from CoinGecko, the network has released 540,958 ETH and burned 465,657 ETH in 2024. This indicates a net addition of 75,301 ETH to the network.Because of this increase in quantity and lower burn rate, the price of ETH has fallen. Since the Dencun update, it has dropped by 35%.
The ETH price is $1,585, which is down 2.79 percent in the last 24 hours and 5 percent in the last week. Even though the release of Ethereum ETFs caused a lot of attention, the money coming in has been small.
A recent CoinShares report says that only $4.2 million came into Ethereum last week, even though $30 million was coming into digital asset investment goods overall. The small inflows occur during a period of uncertainty in the economy as the Federal Reserve is unlikely to lower interest rates anytime soon.
