Ethereum (ETH) transaction fees have recently reached their lowest levels since 2022, signaling a milestone for the second-largest cryptocurrency. The average fee for transferring ETH is now $1.83, while purchasing tokens through Uniswap costs around $4.17. This decline in gas fees can be attributed to reduced on-chain activity related to NFT sales, meme coin trading, and Telegram bots.
The decrease in gas fees has resulted in Ethereum entering an inflationary period, with the supply of ETH increasing by 4,092 tokens valued at approximately $6.6 million over the past week. This shift comes after a surge in on-chain activity earlier in 2022, driven by NFT trading volumes and the Blur token airdrop.
While the reduction in gas fees may benefit Ethereum users by lowering transaction costs and promoting wider adoption, it also raises concerns about supply dynamics and the impact on Ethereum’s value proposition. Monitoring these developments is crucial to understanding the network’s performance and its implications in the broader cryptocurrency market.
As of now, ETH has experienced a decline in price, with a 3% drop in the last 24 hours and declines of 4.5%, 5.5%, and 15% over the seven-day, fourteen-day, and thirty-day periods, respectively.
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