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Ethereum gas fees hit rock bottom on Sunday, plummeting to a mere 0.067 Gwei as the crypto market took a breather after October’s wild ride.
Forget gas guzzlers! On Ethereum, swapping tokens is a mere $0.11 – cheaper than a gumball. Snagging that NFT? A steal at just $0.19. Want to hop blockchains? Bridging your assets costs a pittance, $0.04. Even borrowing on-chain only sets you back $0.09, according to Etherscan. Pocket change in the digital age.
October 10th wasn’t just another day on the crypto calendar; it was a bloodbath. As altcoins plummeted into oblivion, shedding a terrifying 90% of their value in a single, gut-wrenching day, the Ethereum network buckled under the pressure. Transaction fees surged to a staggering 15.9 Gwei – a stark reminder of the chaos unfolding. It was a brutal lesson in market volatility, etched in the blockchain with every costly transaction.
But then, like a fleeting autumn breeze, gas fees plummeted to a mere 0.5 Gwei by October 12th, holding steady below 1 Gwei for the remainder of October and November – a welcome respite in the often-turbulent world of Ethereum transactions.
Ethereum layer-1 gas prices over the last month. Source: Etherscan
On Ethereum’s base layer, bargain-basement transaction fees are drawing investors and traders eager to capitalize on cheap onchain activity. But don’t be fooled by the low cost of entry. Analysts and crypto insiders are sounding the alarm, warning that these alluringly low fees could ultimately undermine the entire Ethereum ecosystem.
Related: Ethereum fees hover near pennies as daily transactions top 1.6M
The Ethereum base layer has seen a loss of revenue since 2024
Remember the 2021 crypto frenzy? While fortunes were being made, simply moving your Ethereum could cost you a small fortune. During peak madness, layer-1 transaction fees soared to a staggering $150 or more, turning a simple transfer into an expensive gamble.
Ethereum’s revenue plummeted 99% after the March 2024 Dencun upgrade slashed transaction fees on its layer-2 networks. The upgrade, designed to make Ethereum more affordable, succeeded perhaps too well, leaving a gaping hole in its income statement.
Ethereum layer-1 network fees 2023-2025. Source: Token Terminal
Low network fees: a ticking time bomb? Critics argue these tempting rates could destabilize blockchains. Without sufficient income, validators or miners may lack the incentive to diligently process transactions and safeguard the network, potentially creating a financial and security house of cards.
Dwindling fees and revenue? That could be the canary in the coal mine, hinting that users are abandoning ship for greener blockchain pastures.
Binance’s research paints Ethereum’s layer-2 scaling solution as a gamble. While promising, this ecosystem of interconnected networks could either catapult Ethereum to new heights or become its Achilles’ heel.
Ethereum’s scaling solution, Layer-2 networks, ironically fuel a turf war within its own kingdom. While boosting transaction speeds to rival faster blockchains, they simultaneously siphon revenue from Ethereum’s main chain, creating a competitive landscape where Ethereum fights against… itself.
Magazine: How Ethereum treasury companies could spark ‘DeFi Summer 2.0’
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