Ethereum (ETH) saw a substantial reduction in its gas prices at 10 gwei per unit. This is approximately 50 cents. One gwei equals one billionth of an ETH.
Because ETH is still in high demand, the lower fees also apply to high-priority transactions. There are currently more than 1 million transactions per day that pay the 50 cents fee. This fee is the lowest since July 2020 and contrasts with May 2018’s fees. Previously, $70 was required for each transaction to access the ETH network.
The emergence of second layers (L2) could explain the drop in ETH fees. Arbitrum and layer twos are currently facilitating approximately 2.23 million ETH in value of $6 billion. The increase in gas limits from 15 million blocks to 30 million is another reason. This doubled network capacity and lowered fees began in August 2013.
Another important reason for the reduction in gas fees is the fact that there are fewer network airdrops. Reduced NFT mintings and airdops directly translate to less clogging of the ETH network.