Ethereum Gas Fees Plummet to Historic Lows: Can the Network Broaden Its Appeal?

Ethereum (ETH) has recorded its lowest average gas fees since November 2016.



According to Dune Analytics data, on June 30, the average gas fee dropped to just 3 Gwei, equivalent to $0.14. Notably, nine of the ten cheapest hours for gas fees occurred last week. Gas fees are essential to the Ethereum network. They cover the costs of various operations and ensure the network’s security by incentivizing validators. These fees also act as a deterrent against spam attacks.



Analysts have attributed the significant drop in fees to improved efficiency in the layer-1 (L1) market. The efficiency is driven by a combination of increased layer-2 (L2) volume and the introduction of “blob transactions” through EIP-4844, which has enhanced Ethereum’s scalability.



Historical Context



A year ago, median gas prices ranged between 15 to 20 Gwei,


First found on: Coinatory cryptonews