Ethereum median fee drops to $1.57, lowest since 2020

Ethereum median fee drops to .57, lowest since 2020

The Ethereum (ETH) ecosystem’s biggest obstacle to market dominance is often attributed to the sky-high transaction fees or gas fees it requires to complete a transaction. However, with Ethereum’s average fees dropping to 0.0015 ETH, the narrative is going to change.

The average transaction fee on the Ethereum blockchain dipped to 0.0015 ETH or $1.57, a figure previously seen in December 2020. However, as of January 2021, Ethereum gas fees skyrocketed due to hype. around non-fungible tokens (NFTs), decentralized finance (DeFi), and a promising bull market.

Average Ethereum transaction fee throughout the year. Source: BitInfoCharts

For almost two years, between January 2021 and May 2022, the average gas fee required by the Ethereum network was approximately $40, with the highest gas cost recorded on May 1, 2022, $196,638 -as data shows. from BitInfoCharts.

Supporting this sudden drop in gas prices, Cointelegraph found on Saturday that daily sales of NFTs have also fallen to one-year lows. The NFT ecosystem posted its worst performance of the year in June, as the total number of daily sales fell to approximately 19,000 with an estimated value of $13.8 million.

Ethereum median fee drops to $1.57, lowest since 2020
Number of daily NFT sales between June 2021 and June 2022. Source: NonFungible

In November 2021, as outrageous gas fees were reported by numerous investors, Ethereum co-founder Vitalik Buterin published a cap and cost reduction proposal to reduce unprecedented levels of stress on the network. Buterin had proposed a short-term solution to further reduce winding costs by introducing a calldata cap per block to reduce ETH gas costs.

Ethereum liquidity provider XCarnival recovered 1,467 ETH just one day after suffering an exploit that drained 3,087 ETH, worth about $3.8 million, from the protocol.

Blockchain researcher Peckshield explained the nature of the attack stating:

“The hack is made possible by allowing the withdrawal of a linked NFT to be used as collateral, which is then exploited by the hacker to drain assets from the pool.”

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