Ethereum Gas Fees Record the Lowest Rates Since 2020 for 38 Consecutive Days
The Merge might eventually complete the switchover of the Ethereum network from proof-of-work (PoW) to proof-of-stake (PoS) in 43 days. Layer 1 (L1) onchain transaction costs for Ethereum had fallen below $5 during the last 38 days, and by the end of July, they have fallen even further. The average Ethereum network charge at the time of writing is 0.00086 ether, or $1.46 per transfer. According to data, transfer costs have been as low as $0.21 to $0.576 per transaction on Sunday morning, making the median prices significantly lower (EST).
The Price of Ethereum Gas Remains the Lowest Ether Transfers Top Opensea’s Burn Rate Starting in December 2020
Ethereum data costs for network transactions have been much lower than typical for a while. In reality, the average Ethereum network price for transfers is now 0.00086 ether, or $1.46, which is the lowest it has been since December 12, 2020.
A gas charge, which is essentially the amount of ethereum (ETH) needed to send data onchain, is less expensive than the fees associated with sending an ERC20 token and using a smart contract.
The Gas Tracker at etherscan.io reports that gas costs range from 5 to 6 qwei per transfer, or $0.21 to $0.32, while the average Ethereum network charge today is about $1.46 per transfer. Decentralized exchange (dex) swaps may cost anywhere between $1.88 and $2.82 every transfer, according to the Gas Tracker, while the price to perform an Opensea sell can range from $0.73 to $1.10 per transaction.
On Sunday morning, it will cost around $0.55 to $0.83 per transfer to push an ERC20 token like USDT or USDC (EST). The average charge for a transaction on Sunday was 0.00034 ether, or $0.576, according to data from bitinfocharts.com. A significant portion of the ETH being burned as a result of Ethereum Improvement Proposal (EIP) 1559 comes from Ethereum transfers.
In the past, Opensea was the main cause of the 2,573,837 ethereum (ETH) that had been destroyed. However, with 232,233 ETH destroyed to date, Ethereum transactions are now the main cause of ether destruction. The deflationary burn mechanism in EIP-1559 eliminates around 0.2 million ether yearly while the supply of ETH grows by 5.5 million each year.
Since the start of EIP-1559, there have been over 156,422,214 conventional ethereum transactions, and during the last 24 hours, ETH transactions and various other kinds of data transfers have destroyed about 649.79 ether.
L2 Fees Provide Cheaper Alternatives for Transferring Ethereum
Fees for layer two (L2) transactions are much less expensive than those for layer one (L1). The least expensive L2 alternatives are offered by Loopring and Zksync as of this writing. Zksync costs are similarly one U.S. cent in value each transaction, whereas Loopring fees are $0.01 per transaction. Since the anticipated Zksync swap charge is now $0.02, while Loopring switching costs are upwards of $0.42 per transaction, it may be somewhat more expensive to trade tokens utilizing these L2 platforms.
While Arbitrum One may cost up to $0.05 every transfer, Optimism L2 gas costs only $0.03 per transaction. According to calculations, using Optimism’s platform to swap might cost a user $0.05, compared to the current estimate for Arbitrum swaps of $0.08 per swap. On August 7, L2 costs are also less expensive on the Polygon Hermez, Boba, Metis, and Aztec networks.