Ethereum gas prices, according to latest sources, have hit an all-time low that customers haven’t seen in over two years. Gas fees on the Ethereum network were as low as 50 cents last week, according to buyers. The main reason for this is the current decrease in ETH trading volume. Further investigation has revealed a number of important elements influencing the current situation of the market, including NFTs and the “rise of Layer2.”
Factors Affecting Gas Fee
Eth hit an all-time high price of $4,891 last year. Mostly because of the recent NFT boom, which has resulted in an oversaturation of network traffic. The broader crypto market is currently experiencing massive liquidation. Due to the present weak market, many purchasers are shifting to risk-off positions. Recent data from DappRadar reveals a significant drop in trade volume on the most popular Ethereum exchanges. In the last month, 9 out of 10 have seen a continuous fall in trade volume, including Rariable (80%) and Opensea (80%). (34.7).
Experts attribute the network’s lowering gas fees to the recent advent of alt-chains such as BSC and Terra. Multiple projects have shifted from Ethereum to various alt-chains due to better scalability within BSC and others.
Users are currently waiting for the network to be merged to a Proof of Stake mechanism, which will allow for cheaper transactions. In addition, recent network enhancements, such as the most recent ‘hard fork,’ have opened up new possibilities, such as ETH burning. Ethereum’s proof of stake model is currently scheduled for release in 2023. Despite this, setbacks are all too typical in the Web3 sector. However, some network modifications may occur sooner than anticipated. We can expect delays gathering around the corner based on recent history. For the time being, we’ll take advantage of the Gwei discounts.
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