Ethereum Gas Fees Nosedives as Memecoin Craze Faints

Ethereum transaction fees gradually declines with a one third price drop, it takes only $7.3 instead of $20.
Ethereum Gas Fees Nosedives as Memecoin Craze Faints

The average gas fee on the Ethereum blockchain, which serves as a flexible toll for transactions and smart contract execution, is currently approaching its lowest point in two months. This comes after experiencing a significant surge in cost during the recent memecoin trading craze that occurred last month.

Based on the data obtained from Glassnode, the average Transaction price on the Ethereum network has decreased to 33.4 gwei, as calculated using a seven-day moving average. This decline follows a previous high of over 107.61 gwei witnessed in the previous month. Interestingly, the fee level has now reached a point comparable to April 17, when it stood at 30 gwei.

To say this in simple words prices has dropped from $20 to $7.3.

Ethereum gas Price Chart by Glassnode

As per insights provided by Dune Analytics user @hildobby, the median gas price per day has declined from its previous peak of over 140 gwei to 24 gwei. Interestingly, the current price level matches that of April 12, indicating a return to similar levels witnessed earlier this year. 

Daily Mediual Gas Price Chart

The significant surge in memecoin trading witnessed in May had a notable impact on the gas prices of the Ethereum network. Consequently, this influence extended to the transaction fees of Bitcoin as well.

Bitcoin’s average transaction fee has surged to a level nearly five times higher than before, hitting a two-year peak at $31.14. The rise in transaction fees is attributed to the emergence of Ethereum-based “BRC-20″ tokens, which have become the preferred standard for memecoins like Ordinal tokens and PEPE coin. These factors have contributed to the increase in Bitcoin transaction fees.

In line with the decrease in average transaction fees on the Ethereum network, the price of ETH has been experiencing downward pressure in recent days. As of the time of writing, the Ethereum price stands at $1,870, reflecting a 1.8% decline overnight.

Also Read: Ethereum (ETH) Price Braces for 5% Drop Amidst Selling Pressure

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