Ethereum Gas Fees Drop to Lowest Levels in 7 Months

Gas fees for transactions on the Ethereum (ETH) blockchain have dropped to the lowest levels since August 2021. Ethereum Gas fees are Now as Low as $8 At the time of writing, the average layer one (L1) Ethereum gas fee is 0.0031 ETH or $8.06 per transfer. The last time average gas costs on Ethereum were this low was seven months ago on August 4, 2021, at $10. Similarly, median-sized ether fees are low as well at 0.0014 ETH or $3.5 per transfer. The most probable cause of the reduced gas fees could be linked to the recent decline in NFT trades. To understand the correlation between the drop in Ethereum’s gas fees and NFTs, one just needs to observe how the trading volume on OpenSea declined from $247 million to $124 million from February 1 to February 6, during which the median gas fee also fell from 134 gwei to 65 gwei. This essentially shows that an increase in NFT transactions also leads to a surge in ETH gas fees, while a drop in the transaction volume also affects it. Along with NFTs, Ethereum-based DeFi projects are also suffering from eight out of the top 10 projects all-seeing red over the past month in terms of total value locked (TVL) and native asset token price, according to data from DappRadar.

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