Ethereum (ETH) has seen a significant reduction in its gas fees at 10 gwei per gas unit, approximately 50 cents. One gwei is one billionth of an ETH.
The lower fees for ETH also apply to even high-priority transactions as demand for the protocol remains high. Currently, there are more than one million transactions on a daily basis paying the low fee of 50 cents. This low charge represents the lowest since July 2020 and stands in stark contrast to fees charged in May last year. Then, anyone looking to use the ETH network had to fork out $70 per transaction.
One reason for the decline in ETH fees could be the emergence of second layers (L2). At the moment, layer twos, including Arbitrum, are facilitating around 2.23 million ETH worth $6 billion. Another reason is the increase in the gas limit from 15 million per block to 30 million. This doubling began in August last year and has increased network capacity while simultaneously lowering fees.
Yet another important reason for the gas fee reduction is that there are fewer airdrops on the network. Reduced airdrops and NFT mintings directly translate to less clogging on the ETH network.
Image Credits: Pixabay
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