The average transaction fee on the Ethereum mainnet is currently just over $2, which is the lowest price since November 2020.
The continued decline in the cryptocurrency market has allowed Ethereum gas fees to drop.
Gas fees on Ethereum have slumped to their lowest dollar level since November 2020, thanks to a drop in ETH price and network activity. According to Etherscan data compiled by YCharts, the average fee for transacting on the Ethereum network is currently 21 Gwei, equivalent to 0.0021 ETH. ETH is currently trading around $1100, which is roughly $2.31.
Ethereum average gas prices (Source: YCharts)Ethereum gas fees also skyrocketed to record highs throughout 2021, as the ETH cryptocurrency market rallied and reached significant levels. The increased interest in NFTs contributed to the rise, with the vast majority of trading taking place in Ethereum. At the height of the market frenzy, called NFT writing, printing NFTs cost users hundreds of dollars, and more complex transactions escalated as the network became increasingly congested.
But since Ethereum and the crypto market peaked in November 2021, gas fees have fallen steadily. ETH has lost 77% of its dollar value since the peak, meaning the dollar cost per transaction has also dropped. The last time Ethereum transactions fell below $2.50, we were in November 2020, when ETH was trading at around $500.
Data from Etherscan shows that the average daily number of transactions has also dropped since the market peaked. Meanwhile, the increasing adoption of Tier 2 solutions such as Arbitrum and Optimism, which reached a cumulative total value of about $2.7 billion last year according to L2Beat, has also eased congestion on the Ethereum mainnet.
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