Ethereum gas prices have fallen to the lowest they have been in the past five months. At the time of writing, the average gas price was 25 gwei, or about $1.17. Since mid-January 2022, the average Ethereum gas has been falling. From around $52.46 per transfer in mid-January, the Ethereum gas fees fell around 71% to a low of $15.13 per transaction in mid-February.
Today, according to data from bitinfocharts.com, the average transaction fees have plummeted further to $10.68. The last time ETH gas prices were this low was in mid-September 2021. In fact, one Twitter user tweeted, “Never seen gas that low”.
Ethereum Gas Prices are dropping
To be sure, over six months ago, Ethereum gas prices were sufficient to burn a hole in one’s pocket. So, what’s causing the dip in prices now?
First things first—what exactly are transaction fees or gas fees? Put simply, these are the fees paid to miners to carry out complex computations to validate transactions on the blockchain. As the network activity on Ethereum soared, so did the gas fees.
According to one report, a possible reason for the drop in gas price could be the increase in layer 2 activity or people moving to other networks. The report also suggests that the fall in gas prices could be directly related to a fall in NFT sales. For instance, it noted, “there’s a brief spike in volume on OpenSea on February 12, and February 13, before it falls off a cliff—the same with gas prices”.
At this point, these are just speculations. Nonetheless, low gas prices are bound to be good news for NFT traders.