Ethereum gas fees drop to 8.8 Gwei, lowest since October 2022

53
2
Ethereum gas fees drop to 8.8 Gwei, lowest since October 2022

On October 8, the average Ethereum gas fee dropped to 8.8 Gwei, levels not seen since October 2, 2022, when the average gas on the network fee was 8.4 Gwei, per Etherscan data.

The gas prices of Ethereum are typically measured in Gigawei, which is equivalent to 109 Wei.

Wei is the smallest denomination of ETH, with 1 ETH equal to 1018 wei.

The drop in gas fees could be attributed to a drop in users on DeFi applications, NFTs, layer-2 networks, and Telegram bots.

The weekly trading volume of NFTs fell to two-year lows, according to a Dune dashboard by data analyst Hildobby.

Since the beginning of the year, the NFT trading volume has decreased significantly.

The Telegram trading bots that took off in the second quarter of this year also saw decreasing activity at the beginning of October, according to a Dune dashboard by TK Research.

The gas consumed by heavyweight sites on Ethereum, including Uniswap, 1inch, and MetaMask, has dropped in double digits since last week, according to data from Nansen 2.0.

The data also indicates that the top gas spenders, including exchanges like Binance and Coinbase, as well as layer-2 networks like Arbitrum, Optimism, and Base, spent 30 percent less compared to the previous week.

This is the first time the consumption on low-fee layer-2 networks has seen a droptick since last year, according to data analyst Funnyking's Dune dashboard.

At the beginning of September 2023, gas fees plummeted, leading to a rise in inflationary Ethereum.

On Monday, the amount of ETH burnt reached its lowest point for the year, with only 7,084 ETH being burnt.

The last time Ethereum experienced such minimal burn levels was on September 19 in a Dune dashboard, shortly after the Ethereum Merge update, which marked the introduction of the burning mechanism.

The supply of Ethereum is currently at 1,450 ETH daily, or $2.2 million worth of Ethereum, per data aggregator Ultra Sound Money.

The annual inflation rate at this rate is 0.44%.