Gas fees on ETH are the lowest they’ve been since 2016.
Since the recent drop in the cryptocurrency market, transactions using Ethereum have returned to the cost-effective levels that they were at before.
It cost just $0.15 to process an average transaction on Sunday.
Ethereum reached an all-time high of $4,372 on May 12, after rising sharply in price. As the price of Ethereum rose, gas costs started to go up.
Market players experienced a strong upward trend during the month of May when gas costs reached a high of 300 gwei.
Although, the current downturn in the market that has seen the price of Ethereum fall by more than 50% has contributed to a slowdown in the entire market. Prices have fallen, leading to a decrease in popularity, making it difficult for the market to recover. but the inverse price movement has worked in ETH gas fees to ETH’s advantage
This implies that traders may now transact for only twelve US cents, which is the new annual low in transaction costs.
It should be noted that, as ETH gas costs continue to drop, so does the number of DEX transactions. Uniswap’s 24-hour volume was $884.5 million during the previous day, down heavily from its May high.
This is a far cry from how Binance used almost $10 million in ETH gas costs in February. There was a massive spike in the number of ETH transactions and trading volume, causing Binance to briefly halt ETH transactions on the exchange.
Now that other DEX’s have been established with significantly cheaper costs, such as Pancake Swap, ETH gas prices are avoidable by traders.
How does ETH gas work?
The unit of measurement for the amount of computing effort needed to perform particular actions on the Ethereum network is called gas.
Because each Ethereum transaction necessitates the use of computing resources, each transaction needs a charge. The cost needed to complete an Ethereum transaction is referred to as gas.
Essentially, gas costs are paid in ether, Ethereum’s native currency (ETH). Gas costs are expressed in gwei, which is an ETH denomination – one gwei equals 0.000000001 ETH (10-9 ETH). Instead of stating that your gas costs 0.000000001 ether, you might say that it costs 1 gwei.
Gas costs contribute to the Ethereum network’s security. Gas prohibits bad actors from spamming the network by demanding a charge for each calculation performed on it.
Each transaction is needed to establish a limit on how many computing steps of code execution it may utilize in order to avoid inadvertent or hostile endless loops or other computational waste in code. “Gas” is the basic unit of computing.
Are you taking advantage of low gas fees on the ETH network?