Ethereum gas fee falls to the lowest since 2020

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The average gas fee of the Ethereum network has decreased to 0.0015 ETH ($1.57). The last time the transaction fee was this low was in December 2020. Daily NFTs sales have also decreased to one-year lows as a result of this sudden fall in prices.

Despite being one of the most prominent blockchains, Ethereum's biggest drawback was its extraordinarily high transaction costs, also referred to as gas fees. The Ethereum network charged an average gas fee of about $40 per month between January 2021 and May 2022, with May 1 of this year seeing the highest average daily gas price of $196.638.

Now that the gas fee has gone down to 0.0015 Ether (ETH), the Ethereum network could see further adoption. Following the price decline, crypto investor and well-known Youtuber Lark Davis tweeted, “#ethereum finally usable again!”

There could be several reasons for the fall in the gas fees. Most importantly, the crypto markets have witnessed a major crash in the last two months, driving crypto prices down. ETH is currently trading at $1,144, falling by more than half from its peak. Another reason for the fall in gas fees could be major liquidation in the network.

Back in November 2021, when many investors complained about the exorbitant gas fees, Ethereum co-founder Vitalik Buterin had presented a proposal to lower costs. He suggested adding a call-data limit per block to reduce the price of ETH gas.

Industry experts predict that ETH might eventually reach a low of $800 and below if the sell-off persists.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash