Ethereum’s Gas Fee Dropped to $1.57, Lowest Since 2020

Written by C, Fiona

Last updated: 2022-07-04

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For almost two years, from January 2021 to May 2022, the average gas fee demanded by the Ethereum network was around $ 40. on May 1, 2022, the highest average daily gas costs was $196,638.

The biggest obstacle to dominance in the Ethereum ecosystem often leads to the high transaction fees – or gas fees – required to complete a transaction. However, with Ethereum’s average gas fee dropping to 0.0015 Ether (ETH), the story is about to change.

The average gas fee on the Ethereum blockchain has dropped to 0.0015 ETH or $1.57 – a figure seen in December 2020. However, from January 2021, Ethereum gas fees have increased due to the hype surrounding non-fungible tokens (NFTs), decentralized finance (DeFi), and the promising bull market.

For nearly two years, from January 2021 to May 2022, the average gas fee demanded by the Ethereum network was around $40. On May 1, 2022, the highest gas cost was $196,638. – according to proven data from BitInfoCharts.

Supporting this sudden drop in gas prices, Cointelegraph discovered on Saturday that daily NFT sales also fell to their lowest levels of the year. The NFT ecosystem saw its worst performance of the year in June, when total daily transactions dropped to around 19,000, with an estimated value of $13.8 million.

In November 2021, when many investors reported excessive gas fees, Ethereum co-founder Vitalik Buterin put forward a proposal to cut costs and cap to reduce pressure levels that were not there before on network. Buterin proposed a solution to further reduce cumulative costs by introducing a per-block call data cap to reduce ETH gas costs.

Ethereum Liquidity Provider XCarnival

Ethereum liquidity provider XCarnival recovered 1,467 ETH just one day after being mined draining 3,087 ETH, worth about $3.8 million, from the protocol.

XCarnival was attacked on June 26, 2022 and suspended part of the protocol. XCarnival officials will give 0xb7CBB4d43F1e08327A90B32A8417688C9D0B800a owner 1500 ETH bounty.
At the same time, XCarnival officals explicitly exempt the person from legal action.

By XCarnival team

— XCarnival (@XCarnival_Lab) June 27, 2022

Blockchain Investigator Peckshield explains the nature of the attack stating: “The hack was done by allowing a retired mortgaged NFT to still be used as collateral, which was then exploited by the hacker to drain the assets from the pool.”

Ethereum's Gas Fee