Ethereum Gas Fees Plummet to Historic Lows

The Ethereum network is currently experiencing a significant drop in gas fees, impacting both mainnet and Layer 2 transactions.

The average mainnet gas fee has fallen to 4 Gwei, about $0.21, with some transactions costing as little as 3 Gwei, around $0.14, per data from Etherscan. Layer 2 solutions, including Optimism, Base, Arbitrum, and Linea, also see fees below $0.01 according to Gasfees.io.

This reduction in fees is largely due to increased use of Layer 2 scaling solutions and the blob transactions introduced in the Dencun hard fork in March, which have helped lower transaction costs.

The decline in gas fees has resulted in fewer ETH being burned, making the network inflationary. Over the past month, the network’s supply increased by more than 60,000 ETH.

The recent approval of eight new Ethereum ETFs by the SEC, including the conversion of Grayscale’s ETHE fund, has further complicated the ecosystem. These ETFs attracted over $1 billion in inflows within four days of trading, despite a $1.5 billion outflow from Grayscale’s ETHE.