Ethereum: Gas costs at their lowest!

Ethereum: Gas costs at their lowest!

If the problem of excessive charges is frequently mentioned, this time Ethereum network is mentioned extremely low transaction fees. And we’ll see that this is not necessarily good news for the network.

Less than $ 3 to buy NFT on the Ethereum blockchain!

If you want to buy NFT through the Ethereum network, now is the right time! By noon Sunday, the median fees per NFT transaction were coming down about $ 3. Level at lowest level for over 10 months.

On May 28, the average cost per validated transaction was $ 0.69 according to data from the Ycharts platform. To put these numbers into perspective, the average cost per transaction was more than $ 3 in mid-April. For many observers, the trend seems to be anchored downwards.

Lower transaction fees: is this good news?

First of all, it is important to understand how gas charges work on the Ethereum network. During all transactions through the network, these costs can be assimilated taxes paid to network miners who come in to validate transactions. When the network is saturated, transaction fees also increase.

For network users as well as NFT fans, the drop in transaction fees seems to be good news. However, the picture is not so rosy. In fact, the fall in transaction costs has led to less use of the Ethereum network by users. And so did the decline in interest in blockchain, as suggested by economic intelligence firm Santiment.

Ethereum fees are so low these days. […] One might even notice that they were so low before the previous lows. Low charges indicate low network activity.

In addition, gas charges are expressed in Gwei, which is equivalent to Satoshi for Bitcoin on the Ethereum network. Therefore, converting gas costs to dollars are functions of Ethereum price. And despite the start of the week, the trend has been bearish for some days. Recall, since the recording of the ATH last November, the ETH signal has lost almost 60% of its value.

The network is clearly reluctant with the prospect of “The Merge”. In fact, users and investors alike are waiting impatiently the merger and transition from Proof of Work to Proof of Commitment. A paradigm shift should be accompanied by a significant reduction in the carbon impact of the Ethereum blockchain, but also a permanent reduction in transaction costs. Enough to regain all its attractiveness?

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