Average transaction fees on Ethereum As more people move to the Layer-2 (L2) networks On the Chain
The Ultrasound. data, the average gas has dropped to 4.81 Gwei — the lowest level since the network completed the Merge event In 2022,
The market observers attribute this to the increased activity in L2 networks after the completion of L2. Dencun upgrade. Dencun upgrade Significantly reduced charges for L2 network transactions, which makes transacting at the base layer much less appealing.
The blockchain analysis platform IntoTheBlock is one of the most notable. reported:
“An increasing number of transactions are now being settled on Ethereum Layer 2s. Last month, the three largest L2s hit a record 82% transaction share of all Ethereum transactions.”
Arbitrum is also seeing a strong increase in the number transactions, which has now reached over Two million transactions per day on May 8 — a significant rise from the early March average of 1 million.
L2beats data Further, Base and Arbitrum managed 30 and 20 average transactions per seconds, respectively, while Ethereum only managed 13 transactions each second over the same time period.
The ETH is now inflating
CryptoQuant’s analysis has revealed that ETH is now in an inflationary phase following the Dencun. upgradeReduced gas prices and reduced burn rate.
The firm stated:
“Since The Merge, Ethereum appeared to be on track with its ‘ultra-sound’ money narrative, showing a slight reduction in the total ETH supply. However, the post-Dencun upgrade challenges this by reducing transaction fees and the ETH burn rate, leading to an increase in supply.”
CryptoQuant explains that Dencun upgrade The environment presented a scenario in which maintaining deflation required a substantial rise in network activity. This is contrary to the trend currently of reduced gas rates and low fees.
UltraSound.Money’s data shows the daily amount burned of ETH during the previous day at 519 ETH. That is a network record-low.
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Source: cryptoslate.com