Ethereum (ETH) Transaction Fee lowered

Ethereum (ETH) transaction costs have significantly decreased, indicating reduced traffic on the protocol compared to previous levels. Specifically, the median transaction fee on the Ethereum blockchain has fallen to 1.9 gwei, while low-priority transactions have dropped to around one gwei or even lower.

This represents a five-year low as activity on Layer-2 networks continues to surge.

Ethereum’s Dencun Upgrade Affects Gas Fee?

According to Dune Analytics, the median gas price on Ethereum dropped significantly on August 10, reaching levels not seen since mid-2019. This represents an almost 98% decrease from the year-to-date high of 83.1 gwei recorded in March. This drop coincided with the popular Ethereum Dencun upgrade, which introduced nine Ethereum Improvement Proposals (EIPs).

Among these, one notable EIP introduced data blobs, also known as proto-danksharding, designed to lower transaction costs for Layer-2 blockchains. The Dencun upgrade, in addition to proto-danksharding, was expected to reduce Ethereum gas fees to nearly negligible levels.

In April, Dune Analytics also reported that Ethereum’s gas fees had dropped to their lowest point in three years.

The Ethereum ecosystem is increasingly focused on scaling Layer-2 solutions, which offer more cost-effective transaction handling. This is achieved by abstracting certain processes away from the Layer-1 Ethereum blockchain while still using L1 for transaction verification.

Ethereum’s Layer 2 is working Hard!

Overall, Ethereum’s Layer-2 activity has surpassed that of Coinbase Global Inc.'s (NASDAQ: COIN) Base blockchain. According to L2Beat data, Base recorded over 109 million transactions in the past 30 days, compared to just 33 million on Ethereum. This surge in activity comes nearly a year after Coinbase launched Base. In March, Coinbase announced plans to migrate USDC stablecoins for its customer and corporate accounts to Base.

Layer-2 solutions like Arbitrum and Taiko also reported an additional 97 million combined transactions in the last 30 days.

As a result of this shift, less Ethereum is being used in transactions or distributed as payouts to stakers. This has led to a significant increase in Ethereum's supply, with nearly 13,400 ETH (approximately $34.1 million) added to the supply in the past week.

Where to Buy Crypto?

If you're interested in Ethereum and ready to dive into the world of crypto but aren't sure how to buy your desired digital asset, don't worry. Crypto exchanges make it easy to purchase any cryptocurrency, and there are several available in Georgia, including Binance, Mycoins, Coinmania, and more. One standout option is Cryptal.

Whether you're new to the industry, exploring Ethereum, or considering it as your go-to cryptocurrency, Cryptal offers a straightforward, secure, and cost-effective way to buy crypto.

Cryptal caters to both beginners and seasoned investors. Here, you can buy crypto using two methods:

• Convert - Instantly purchase Ethereum and other popular cryptocurrencies like Bitcoin, Solana, and more with just a few clicks.
  
  
  • Click Buy Crypto
  • Select your desired Cryptocurrency and Stablecoin
  • Enter the amount you wish to purchase
  • Click "Buy"

• Spot Trade - This is a digital marketplace where crypto buyers and sellers come together to trade digital assets. It’s the ideal platform to buy cryptocurrency at the most competitive prices.
  
  
  • Enter "Spot Trading"
  • Choose your trading pair (e.g., ETH & TOUSD)
  • Specify the amount
  • Place a request

After placing your request, you'll wait for a seller to match your conditions. Once a match is found, the order will be successfully completed, and you'll receive the digital asset in your crypto wallet instantly.

Cryptal also offers two additional features that simplify buying crypto:

A. Market Order: This feature automatically finds the best available price on the market for your chosen cryptocurrency.

Example: If 10 people are selling Ethereum on the exchange, the Market Order feature will secure the lowest price for you.

B. Limit Order: This feature allows you to set specific price limits for the maximum and minimum you're willing to pay. The exchange then connects you with the best price within your specified range.

Example: If you set a price range between $3500 to $3600, the exchange will automatically purchase the cryptocurrency when a seller meets your price criteria. If no match is found immediately, the exchange will wait until a suitable offer appears.

Summary

Ethereum transaction fees have recently dropped significantly, indicating reduced network traffic. The median gas price fell to a five-year low of 1.9 gwei, largely due to the rise in activity on Layer-2 networks. Dune Analytics reported a nearly 98% decrease in gas prices since March, coinciding with the Ethereum Dencun upgrade, which introduced features like proto-danksharding to lower transaction costs for Layer-2 blockchains.

Layer-2 activity, especially on platforms like Arbitrum, Taiko, and Coinbase's Base blockchain, has surged, with Base alone recording over 109 million transactions in 30 days compared to Ethereum's 33 million. This increased Layer-2 activity has reduced the use of Ethereum in transactions and payouts, leading to a growth in its supply, with over 13,000 ETH added in the past week.