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Kaiko Report: Ethereum Gas Fee Record Low Will Have Impact on Price and Inflation

CointimeCointime2024/08/20 08:52
By:Cointime

Industry research company Kaiko reported that Ethereum's gas fees have recently fallen to the lowest level in five years. According to Etherscan's GasTracker, the average network fee for Ethereum Layer 1 is currently 2.15 Gwei or only $0.13, the lowest level since 2019. Kaiko's report stated that the reduction in fees may have an impact on the issuance of Ethereum and the amount of gas consumed when used. If the supply is no longer deflationary, this may also have an impact on the price. At the same time, due to the decrease in network fees and the lower base fee burn rate after the launch of EIP-1559, the total supply of ETH has increased since April. According to data from ultrasound.money, the supply of ETH has increased by 0.2% since early April, from 120.063 million to around 120.286 million. This means that in the past four months, an additional 223,000 ETH has been added, worth approximately $591 million at the current spot price. The report stated that on a weekly basis, the supply of ETH increases by 0.71% per year. At the current consumption rate, this means an increase of approximately 16,500 ETH per week.

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