The Ethereum network, known for its versatility and the high cost of transactions, is now showing signs of relief for user, particularly those engaging in DeFi activities.
Ethereum’s blockchain has seen a decrease in daily average gas fees, trending toward a two-month low.
The gas fee, a variable charge incurred when executing a transaction or smart contract on the Ethereum blockchain, is currently reported at 21 Gwei, according to data from Etherscan.
The seven-day moving average of transaction fees on Ethereum has dropped to $7.34, a significant decline from last month’s high of over $20. This trend echoes the fee levels observed on April 17, when the average transaction fee hit $6.57.
The reduction in gas fees comes in the aftermath of last month’s memecoin trading frenzy. An unprecedented surge in the trading of these tokens, most of which hold speculative value, led to a significant increase in demand for block space.
Traders seeking to capitalize on the memecoin trend turned to decentralized exchanges like Uniswap, contributing to the spike in Ethereum’s transaction fees.
Centralized exchanges, slower to list memecoins like Pepe, were bypassed by traders who didn’t wait for these listings and instead opted for DEXes.
However, as the memecoin mania has ebbed, so too has the demand for block space, leading to the current decline in gas fees. This drop in fees may encourage increased activity on the Ethereum blockchain, as lower transaction costs make it more accessible for users.
Despite the volatility of the crypto market, Ethereum continues to be a major player, maintaining a price of $1,869.70 at the time of writing.
