According to Wu Blockchain, on August 10, the average gas fee on the Ethereum network dropped to 2 gwei, the lowest level in 5 years.
Specifically, on August 10, the daily average gas fee reached 3.49 gwei per transaction, and at certain points during the day, the gas fee on the Ethereum network hit a low of just 0.61 gwei per transaction.
On the same day, the average transaction fee in USD on the Ethereum network fell to $0.93, marking a new record low for 2024 and the lowest in 5 years. Previously, in June, the transaction fee had dropped to $1.3.
Analysts believe that the decline in Ethereum gas fees is the result of multiple factors combined. The primary factor is the Dencun upgrade in April, which significantly optimized the network’s performance.
Additionally, Ethereum’s scaling expansion to Layer-2 solutions, aligning with founder Vitalik Buterin’s vision, has encouraged users to shift to Layer-2, reducing congestion on the mainnet.
Related: What Price Targets Does the Community Expect for Bitcoin, Ethereum, and Solana?
As a result, the daily transaction volume on Ethereum has decreased to its lowest level in 5 months.
Recently, despite Ethereum being traded as an ETF, it has faced substantial sell-offs from Grayscale and especially Jump Trading.
