High gas fees were once the biggest challenge investors faced when using the Ethereum network, however, Ethereum has engineered a steady decline in its gas fees, which have dropped by 90% in the last six months.
High Gas Fees Are a Thing of the PastÂ
According to crypto data intelligence platform Santiment, the average gas fee on the Ethereum network is currently $5.81, 90% less than the average charged in November 2021. According to Etherscan.io, gas fees are currently as low as $3.17.
On November 8th, 2021, the average users paid for a transaction was $62.85, and in May of 2021, gas fees hit their highest point of $69, with many experts attributing the sudden spike in Ethereum’s gas fees in 2021 to the surge NFT sales on the network.Â
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The migration of Ethereum from a Proof of Work (PoW) to a Proof of Stake (PoS) consensus model, and the rise in popularity of Layer 2 protocols are some of the reasons for the decline in gas fees.
Ethereum Set to Rally in Q2 2022
With Ethereum building towards the ‘Merge’, bullish sentiment is building around the Altcoin. Billionaire investor Mark Cuban, has joined the growing list to have expressed their excitement about the upcoming Ethereum 2.0 ‘Merge.
Backing the predictions, Wall Street behemoth Goldman Sachs is now preparing to launch OTC ETH options trading due to rising client demand. These developments have led many to believe that ETH will outstrip its Layer-1 competitors in Q2.
On The Flipside
- Layer 2 protocols still offer cheaper, faster transactions than the Ethereum network, costing just pennies in some instances.
Why You Should Care
Analysts at Santiment believe that a Ethereum price surge could formulate from the drop in transaction fees.
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