The average gas fee for an Ethereum transaction has dropped to the lowest level in five years, now at 0.808 gwei, or $0.05 per transaction, which is a positive outcome given Ethereum's shaky position as the leading smart contract platform.
For Ethereum, which has seen gas fees fall from as high as $100 in the past, this is a historic moment. The current fee for a Ethereum transaction is $0.05 for low priority, and $0.06 is for average and high priority – as per Etherscan data.
This decrease in gas fees marks its 5 years low. In the year 2020, the value of gas fees reached as high as 709.7 gwei which is around $196 per transaction. This rise was mostly due to the NFT trend, rising interest in DeFi applications, and increased network activity.
This decrease in the gas fee comes after a number of recent developments, such as the expansion of Ethereum's gas limit to 36 million units. As a result, network congestion was reduced and Ethereum's capacity to accommodate more transactions per block was enhanced.
This event marks a positive development for Ethereum, which will make its ecosystem more efficient, affordable and accessible to both users and developers.
