The post Ethereum Transaction Fees Plummet to 4-Year Low Amidst Network Upgrades appeared on BitcoinEthereumNews.com.

Ethereum’s network has recorded the lowest transaction fees in four years. This dip signals the potential benefits layer-2 solutions might bring to transaction costs. Notably, the recent average transaction fee dropped below 3 gwei, a level unseen since January 2020. Ethereum transaction fees plummet to a four-year low, marking a significant milestone for the network. Ethereum’s Transaction Fees Hit Record Low Over the past weekend, the Ethereum (ETH) mainnet saw its average transaction fees dip below 3 gwei, a threshold last witnessed in January 2020. This remarkable drop highlights the efficacy of layer-2 (L2) solutions in potentially reducing transaction costs on the Ethereum network. A year ago, ETH transaction fees typically ranged between 15 and 20 gwei. According to on-chain data platform Dune, the highest average transaction fee recorded this year was in March, with daily peaks reaching as high as 83 gwei on March 5. Currently, the average transaction fee stands around 4.69 gwei. The Impact of the Dencun Upgrade Since the Dencun upgrade went live on the mainnet on March 13, transaction fees have decreased consistently. This upgrade has led to a dramatic 92% reduction in Ethereum’s transaction fees. The significant decrease underscores the effectiveness of the upgrade in enhancing network efficiency. Shift Towards Inflationary Trends TRUSTED BY COINOTAG,Did you missed $MEME, $PEPE or Bitcoin? No worries! Click here to sign up chosen altcoin exchange! As transaction fees have diminished, so too has Ethereum’s burn rate, leading to slight inflationary tendencies. Data from Ultrasound.money indicates that the reduction in transaction fees has slowed ETH burning, resulting in a subtle inflationary shift within the network. This development has implications for the overall supply dynamics of ETH and its future economic model. Bitcoin Transaction Fees Also Decline Bitcoin has also experienced a reduction in transaction fees. As of June 23,…

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Filed under: News - @ June 24, 2024 12:22 pm