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Ethereum (ETH) gas prices have fallen to their lowest level than they have been in the past six months. In fact, transactions on the Ethereum network are now 80% less expensive than it was around 48 days ago on January 10.
Ethereum Gas Fees Continue to Drop
As of Feb. 28, the average transaction fees on the Ethereum (ETH) network have been down to 0.0044 ETH or $11.44 per transfer. The last time Ethereum network fees were this low was six months ago, back in August 2021. With the average fees at $11.44 per transfer, it’s 80.26% cheaper than it was transferring ETH on January 10, 2022. At that time, the average transaction fee was $52 per transaction. Meanwhile, the median-sized gas fee was $29 in ether 48 days ago on January 10. Today it’s down 84.31% lower at 0.0019 ETH or $4.95 per transfer. L2 transactions are also cheaper than on-chain transactions on the Ethereum network. Currently, the lowest L2 fee to send ETH is by leveraging Loopring for $0.08 per transfer. To swap tokens with Loopring, the gas price cost $0.65 per swap at the time of writing.
What Could Be the Reason?
According to a report, a possible reason for the drop in gas price could be an increase in layer 2 activity or users moving to other networks. Similarly, the fall in gas prices could also be directly related to a fall in NFT sales. For instance, the report noted, “there’s a brief spike in volume on OpenSea on February 12, and February 13, before it falls off a cliff—the same with gas prices”.