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Ethereum Gas Fees Fall By 90% in 6 Months, as ETH Prepares for Q2 Rally -Breaking

by Mike Robinson

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Ethereum Gas Fees Drop by 90% in Six Months as ETH Prepares for Q2 Rally

High gas costs were once the greatest challenge for investors when it came to using the network. However, Ethereum has managed to steady decrease its gas prices, dropping by 90% over the past six months.

The past is gone, high gas fees

Santiment crypto data intelligence platform, $5.81 is the current average Ethereum gas fee. This is 90% lower than November 2021 average. Etherscan.io reports that gas fees currently range from $3.17 to $5.81.

On November 8th, 2021, the average users paid for a transaction was $62.85, and in May of 2021, gas fees hit their highest point of $69, with many experts attributing the sudden spike in Ethereum’s gas fees in 2021 to the surge NFT sales on the network.

Gas fees have fallen because of two things: the transition of Ethereum from Proof of Work to Proof of Stake consensus model and the rising popularity of Layer 2 protocols.

Rally for Ethereum in Q2 2022

With Ethereum building towards the ‘Merge’Altcoin is gaining momentum due to bullish sentiment. Billionaire investor Mark Cuban, has joined the growing list to have expressed their excitement about the upcoming Ethereum 2.0 ‘Merge’.

Wall Street giant Goldman Sachs (NYSE 🙂 has confirmed the prediction and is currently preparing for OTC ETH options trading in response to growing client demand. Many believe that ETH will surpass its Layer-1 counterparts in Q2.

Flipside

  • Although the Ethereum network is faster than Layer 2, layer 2 protocols are cheaper and more efficient, some transactions can be done in a fraction of the time.

Why you should care

Santiment analysts believe an Ethereum price rise could result from a drop in transaction fees.

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