Ethereum gas fees drop to 2 gwei as activity declines on mainnet
Share link:In this post: Ethereum gas fees fall below 1 gwei as network activity plummets Layer-2 networks are taking the shine off Ethereum L1 with lower fees and faster transactions ETH supply now inflationary as network burns gas fees at rate of 0.46 ETH/minute.
Ethereum gas fees reached their lowest level in years today, as the average fee dropped below 2 gwei. The record-low gas fees are due to a decline in Ethereum base layer activity as more users move to Layer-2 networks.
L2 networks have become more attractive and have seen more usage since the Dencun upgrade. The upgrade significantly reduced transaction costs on Layer-2 networks, making it impossible for the Ethereum mainnet to compete even as gas fees reached record lows.
Ethereum L2 growth leaves mainnet struggling for activity
Ethereum L2s have posed a threat to activity on the mainnet as far back as 2022 when they were accounting for around 50% of all Ethereum transactions. However, the dominance of L2 networks has increased significantly over the last six months.
According to data from blockchain analytics provider IntoTheBlock , the top three L2 networks were responsible for 82% of transaction shares on Ethereum by April 2024. This surge happened after the Dencun upgrade when gas fees on Ethereum L2s fell to a new low.
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