Ethereum gas fees have plummeted to an unprecedented low of 0.067 Gwei, marking one of the lowest levels in recent history. This drop translates to minimal transaction costs, with average prices for executing a swap at just $0.11, NFT sales at $0.19, bridging assets to other chains at $0.04, and on-chain borrowing at $0.09, according to Etherscan data.
The ultra-low fees provide significant benefits for traders and users, enabling cheaper asset movements, token swaps, and interactions with DeFi protocols without the usual cost burden. This reduction in entry barriers could encourage broader adoption of decentralized applications and experimentation.
However, the fee decline is primarily attributed to a notable slowdown in network activity, raising concerns about Ethereum's long-term revenue model. Ethereum's proof-of-stake system depends on transaction fees and Maximum Extractable Value (MEV) to incentivize validators and secure the network. With fees this low, validator revenue is reduced, potentially compromising network security and sustainability.
Historically, during the 2021 bull run, fees could exceed $150 during congestion. After the Dencun upgrade in March 2024, which lowered fees for Layer-2 scaling networks, Ethereum's revenue declined by 99%. This trend is exacerbated by Layer-2 solutions handling more transactions, cannibalizing base layer revenue and creating internal competition.
Experts are divided on whether this dip is temporary, due to reduced meme coin hype and NFT volume, or a sign of a maturing network with improved scalability. The coming weeks will be crucial in determining if ultra-cheap gas is a positive shift or a warning of deeper issues in Ethereum's ecosystem.
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