Ethereum Fees Drop to YTD Lows as L2 Chains and Solana Shine

Ethereum gas fees hit new year-to-date (YTD) low amid month-long free fall.

Guy feeling the power of Solana.
Created by Kornelija Poderskytė from DailyCoin
  • Transaction fees on Ethereum have plummeted in the past month.
  • On Sunday, April 14, these fees reached their lowest point in 2024.
  • The fee drop comes as attention shifts to Solana and Base.

Amid the recent memecoin mania, on-chain activity appears to be shifting away from Ethereum to Solana and, most recently, Layer 2 chains like Base. While some may see this, particularly the flows to Solana, as a loss to Ethereum, there’s a silver lining for everyday network users: fees are dropping.

Ethereum Gas Price Takes a Dive

According to Dune Analytics data compiled by Dragonfly Capital Head of Data Science, Hilderbert “hildobby” Moulié, Ethereum’s gas price has been in free fall since early March 2024. On Sunday, March 14, the average gas price plummeted to 12.5 gwei, marking a new 2024 low.

Chart of Ethereum’s median gas price over the past six months.
Chart of Ethereum’s median gas price over the past six months. Source: Dune

Gas price, typically denominated in gwei (0.000000001 ETH), refers to the cost users have to pay per unit of gas (the computational effort required to conduct an action on the Ethereum network). To calculate transaction fees, users have to multiply the amount of gas needed for the transaction by the gas price. 


Gas prices are primarily determined by market forces of demand and supply. When there are many transactions waiting to be processed, the demand for gas is high, driving up its price. At the same time, when network activity drops, gas prices also drop. 

The recent decline in gas prices on Ethereum coincides with the peak of the recent memecoin mania on Solana as well as the Dencun upgrade, which saw some of this volume also move to Layer 2 networks, particularly Base, as transaction fees on these networks also plummeted.

Read these for more on Ethereum:
Ethereum’s Next Upgrade Will Boost Wallet UX, but at What Cost?
SEC Requests Comments on Ethereum ETFs as May Deadline Looms


This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.