Gas prices are up. But not in Ethereum

Ethereum gas price is falling rapidly. Another record has been reached for the average gas price — 13 GWEI.

Ethereum continues to fall. But, this is the case when the fall attracts investors, and is not frightening, because of falling prices. According to Etherscan.io, average gas price on Mon, 11 Jul 2022 07:34:00 UTC was only 13 GWEI.

What is GWEI? This is the denomination of the cryptocurrency ether (ETH), which is equal to one billionth of ETH (0.000000001). Therefore, GWEI is also called nanoether. GWEI is used to specify the gas price. Gas is a measure of transaction power. Transactions need gas, which costs GWEI. In fact, the gas fee is a compensation for the energy spent by miners or validators.

Ethereum gas price has been falling rapidly since the beginning of the year. Back in January 10, the average gas price, according to Etherscan, was 218.54 GWEI, which is more than 1500% of today’s values.

A drop in gas price equates to a drop in transaction fees. According to Messari on July 10, the average transaction fee was only $2.13.

Previously, the average transaction fee was lower than now. After December 2020, the NFT and DeFi hype began, during which the average transaction fee soared to a record $41.16 on the 8th of November 2021.

The drop in gas price and transaction fees may be caused by the outflow of many projects to L2 due to high commissions of mainnet. Also, this fall may be related to the current ‘cryptowinter’.

The drop in average gas price and average transaction fees can help Ethereum attract more users, because everyone likes low fees. Plus, an increase in network activity, in turn, can help Ethereum deal with the difficulties of the bear market. We continue to observe.