Ethereum network has reported the lowest average fees as of the current year since the year 2016. This disclosure was made by the founder of Wu Blockchain on X, who ensured that information on this was passed on by Coinbase Director Conor. The above data implies that of the ten least average fees per hour on the Ethereum network nine were encountered this week and all the nine were less than 3.3 gwei.
On June 30, the average fee per hour on the Ethereum network was a mere. This was the second lowest point in the network’s recorded history with fees standing at a paltry 2.94 gwei. This is a clear indication that Ethereum users and the entire crypto space could be standing on the edge of a new and exciting phase.
Ethereum Fees Hit Record Lows
The network fees plummeted, while during the previous year fees were as high as 100 gwei during peak hours of network traffic. Some reasons for the decrease include; improvement in the efficiency of ETH in the recent past due to the upgrades and changes made to the network that aim at improving the capacity of the network.
These historically low fees are expected to affect the Ethereum ecosystem in a very big way. This reduces the cost of doing business and hence encourages more people to engage in activities within the network, developers deployment of dApps and more transactions. It is also important to note that the reduced fees also help in creating a lowered barrier of entry for new investors and the smaller investors thereby giving everyone an equal chance to be a part of the Ethereum network.
Also, this fee reduction is consistent with the Ethereum’s vision of moving to Ethereum 2.0, which is already expected to enhance the scalability and decrease the costs by moving from the proof-of-work to proof-of-stake consensus models. As the ETH community is still striving for these upgrades, current low fees are telling about the possible future state of the network and its cost.
Decreasing fees on the ETH network are a perfect opportunity to evaluate the platform’s current state. The future of Decentralized Finance and Blockchain technology is hereby being altered as the crypto world patiently waits to see what shall follow the reduced fees.