EthereumETHSince November 2016,, has seen its average gasoline prices drop to their lowest level since then.
Dune Analytics dataOn June 30, gas prices dropped by just 3 cents per gallon. GweiThe equivalent of $0.14. It is noteworthy that nine out of the top 10 hours to buy gas were last week.
The Ethereum network cannot function without gas fees. These fees are used to cover costs for various operations, and they also ensure network security through validators. They also serve as a barrier against spam.
Analysts attribute the drop to the improved efficiency of the Layer-1 (L1) Market. This efficiency comes from a combination increased layer-2 The introduction to the (L2) Volume “blob transactions” EIP 4844 has improved the scalability of Ethereum.
History of the word
In contrast, today’s lower gas prices are a dramatic improvement from the 15-20 Gwei range of a year ago. By March 2024 peak gasoline prices will be reached. gas prices Dune Analytics recorded 83 Gwei on 5 March.
Gas prices in the median have been steadily declining since then. Dencun upgrade 13th March. On March 13, Ethereum’s gas median price reached a 3-year-low, falling to 6,43 Gwei, the lowest single-day gas median price in the last three years.
Moreover, it fell below 3 Gwei on the 23rd of June, which is a low level that has not been seen since 2020. It was the first time in 7 years that gas fees for Ethereum were so low.
The industry believes that Ethereum L2’s networks have reduced transaction costs for the second most valuable blockchain in the world.
Lower gas prices matter
This drop is important for several different reasons. Low fees increase the accessibility of the Ethereum network to a wider audience and encourage more developers and users to use the platform.
The network can be further consolidated in its blockchain ecosystem through increased adoption and use of Ethereum applications.
Affordable gas charges help maintain the security and function of the network without pricing out small participants.
The democratization is crucial for encouraging innovation, and to ensure that blockchain technology benefits are distributed widely.
Lower gas prices can also stimulate the growth of sectors such as decentralized financing and non-centralized financial technologies, where high transaction fees previously hampered activity.
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Source: crypto.news