One good thing that the bear market brought is the cheap gas fee for Ethereum as it falls below $3, with the price correcting to $1,700. Yes, it’s the same coin whose transaction costs touched almost $100 at peak times. On Sunday, ETH gas fees made a 10-month low at $2.96. The last time we saw it drop below $3 was July 11, 2021, when the price was near $2,100. The median fees are even lower at $1.56 per transaction.
Ethereum gas fees hit 10-month lows
Ethereum’s gas fees are heavily dependent on demand, and the NFT markets also influence it quite a lot. As the gas fees fall to $2.96, we can easily conclude that the NFT volume has also fallen. Such low fees were seen 10-months back when the price of Ethereum was around $2,100. Though that’s a little higher than where we are at right now, the range is pretty close. Just a few months back, the gas fees of Ethereum fell below $10, and that felt cheap however, as the bear market kicks in, we are seeing new lows.
NFT transactions on OpeaSea have also become very cheap recently, with the cost being around $10.63 for high-end and $10.26 on the lower side. Swapping on DEXs like Uniswap is near $9.5, which is not cheap by any means but is comparatively inexpensive. The cost depends a lot on what you are trying to do. For example, the transfer of ERC-20 tokens is much cheaper at $4.37 per transfer for USDT and USDC.
Layer 2 transaction fees are still much lower than Ethereum
Ethereum’s gas fees seem to be cheap, below $3; however, when you compare it to L2 solutions, it is still very expensive. For example, Zksync transactions cost 4 cents for transfer and 9 cents to swap, which is like 100 times cheaper compared to ETH. Other options like LRC, Arbitrum One, and Optimism cost a little more but are still inexpensive relative to Ethereum.
Low Ethereum fees mean if you were looking to mint some NFTs on OpenSea, it’s going to be really pocket-friendly to do it right now. What are your thoughts as the Ethereum gas fee falls below $3? And do you think it shows that the bear market has kicked in? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Italy allows Binance to offer crypto products in the country.
