The Ethereum ecosystem’s biggest roadblock to mainstream dominance is often attributed to the extremely high transaction fees or the gas fees it requires to complete a transaction. Moreover, with Ethereum’s average gas fees coming down to 0.0015 ETH, the narrative is set to change.
The average transaction fees on the Ethereum blockchain fell down to 0.0015 ETH or $1.57 – a number previously seen in the month of December 2020. Moreover, starting in the month of January 2021, Ethereum’s gas fees surged owing to the hype around non-fungible tokens (NFT), decentralized finance (DeFi), and a promising bull market.
For nearly around two years, between the month of January 2021 and May 2022, the average gas fees required by the Ethereum network was roughly around $40, with the 1st of May 2020 recording the highest gas fees of $196.638, as evidenced by the data from the BitInfoCharts.
Supporting this sudden drop in gas prices, a report uncovered on Saturday that the daily NFTs sales have also dropped to one-year lows. The NFT ecosystem recorded its worst performance of the year in the month of June as the total number of daily sales fell to around 19000 with an estimated value of $13.8 million.
In November 2021, back at the time when several investors reported outrageous gas fees, Ethereum co-founder Vitalik Buterin published a decreased cost and cap proposal to reduce unprecedented levels of strain on the network. Buterin had proposed a short-term solution to further cut rollup costs by introducing a call data limit per block to lower the ETH gas costs.
XCarnival, which is an Ethereum liquidity provider, recovered around 1467 ETH just a day after suffering an exploit that drained 3087 ETH, worth roughly $3.8 million, from the protocol.
As per the XCarnival tweet: “XCarnival was attacked on the 26th of June 2022, and suspended part of the protocol. XCarnival official will give 0xb7CBB4d43F1e08327A90B32A8417688C9D0B800a owner 1500 ETH bounty. At the same point of time, XCarnival officials explicitly exempt the person from legal action.”
Peckshield, a blockchain investigator, explained the nature of the attack by stating that the hack is made possible by allowing a withdrawn pledged NFT to be still used as collateral, which is then exploited by the hacker to drain assets from the pool.
Conclusion
What are your thoughts as Ethereum’s average gas fee falls down to $1.57? And do you think that the reason for this is the falling demand for NFTs? Let us know in the comments below.
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