Ethereum’s base fees have reached a multi-year low of just 0.8 Gwei, according to the latest data.
Users are required to pay gas fees for transactions, which helps ensure that the network remains spam-resistant.
The base gas fee is the minimum amount of Gwei that users must pay for a transaction to be valid. In addition, users can pay higher fees if they want their transactions to be included in the next block.
Ethereum fees depend on the demand for the network. Ethereum gas fees peaked at $196 in May 2022.
Related
Following the Dencun upgrade, which introduced so-called “blobs,” which can significantly improve scalability through faster and cheaper transactions, the network saw a dramatic drop in fees.
The ever-decreasing fees have ruined the deflationary narrative of Ethereum promoters. According to data from Ultra Sound Money, only In the last seven days, 7,729 ETH tokens were burned, while 18,064 tokens were issued in the same period.
Related
In fact, the Ethereum blockchain experienced its highest inflation to date in the second quarter of the year, according to Fidelity. The firm’s analysts expect the network to see more inflationary quarters to come.
According to Martin Köppelmann, co-founder of privacy-focused Ethereum sidechain Gnosis, a base fee of 23.9 Gwei would be necessary to balance the staking rewards. “Ethereum needs to get more L1 activity again and even though it sounds counterintuitive at such low rates, increasing the gas limit can be part of a strategy,” he added.
