Ethereum (ETH) transaction fees have hit their lowest levels since 2022, marking a significant milestone for the second-largest cryptocurrency by market capitalization.
According to insights from Ryan Selkis, the founder and CEO of Messari, the average fee for transferring ETH stands at $1.83, while the cost of token purchases via Uniswap is approximately $4.17.
This decline in gas fees can be attributed to reduced on-chain activity related to Non-Fungible tokens (NFT) sales, meme coin trading, and Telegram bots.
Decrease In Gas Fees And On-Chain Activity Leads To Increased Ethereum Supply
The drop in gas fees has resulted in Ethereum entering an inflationary period. Over the past week, the supply of Ethereum has increased by 4,092 ETH tokens, with a total value of around $6.6 million.
In early 2023, Ethereum’s on-chain activity experienced a spike, driven by NFT trading volumes and the buzz surrounding the Blur token airdrop. Since then, however, activity has subsided.
Selkis emphasized the current bearish sentiment in the market, stating: “We’re so deep in the bear that ETH is inflationary again.” This observation highlights the impact of decreased demand and reduced transaction volumes on Ethereum’s overall supply dynamics.
Analyzing the fee and gas usage statistics by Messari, Ethereum recorded $2.24 million worth of…
