Ethereum

Arbitrum

Base

<p>Gas fees on the Ethereum mainnet recently hit their lowest level in over four years! Dropping below 1 Gwei, before slightly increasing again. This significant drop in fees has been mainly attributed to the rise in transactions on Ethereum’s layer 2 networks. While this fee reduction has made on-chain transactions much less expensive for crypto users, it has also sparked discussions about its long-term effects on Ethereum’s supply dynamics.</p> 
<h2 id="h-crypto-impact-de-la-reduction-des-frais-de-gaz">Crypto: impact of gas fee reduction</h2> 
<p>The reduction in gas fees has led to an increase in ETH supply, as less ETH is burned. According to data, only 120 ETH were burned in the last day, while the supply increased by more than 2,500 ETH. This situation creates an imbalance that could <a href="https://www.cointribune.com/en/?p=717219" target="_blank" rel="noreferrer noopener">reverse the deflationary trend</a> previously observed on the crypto network.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1"> 
 </div> 
</div> 
<p>Layer 2 scaling solutions, such as Optimism, Base, Arbitrum, and Linea, have seen <a href="https://www.gasfees.io/" target="_blank" rel="noreferrer noopener">their average fees drop</a> below $0.01. These networks now handle more crypto transactions per second than the Ethereum mainnet. For instance, Base managed 39.80 transactions per second (TPS) and Arbitrum 17.28 TPS, compared to approximately 12.17 TPS for Ethereum.</p> 
<div class="affiliate-button"> <a class="affiliate-button__link" href="https://bitvavo.com/fr/affiliate/coinmedia?a=_cta" target="_blank" rel="noreferrer noopener">€20 bonus for registering on Bitvavo</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noreferrer noopener">This link uses an affiliate program.</a> 
</div> 
<h2 id="h-ethereum-face-aux-defis-de-l-inflation">Ethereum facing inflation challenges</h2> 
<p>The drop in gas fees, while beneficial for crypto users, poses challenges regarding network inflation. With less ETH being burned, the total ETH supply increases, which could potentially dilute the value of ETH in the long run. Some market observers suggest increasing layer 1 activity to counter this trend and propose raising the gas limit, even with low fees, to stimulate base layer usage.</p> 
<p>The recent drop in gas fees on the <a href="https://www.cointribune.com/en/crypto-markets/ethereum-eth-en/" target="_blank" rel="noreferrer noopener">Ethereum</a> network has significant implications for supply dynamics and network inflation. While it makes transactions more affordable for users, it also raises concerns about the increasing ETH supply and its potential effects on the long-term value of the crypto. It will be crucial to monitor these trends and adjust strategies accordingly to maintain a healthy balance on the Ethereum network.</p>

Crypto: Gas Fees Plummeting on Ethereum!

Table of Contents

Cointribune EN

Other articles published on Aug 12, 2024

Chainlink Rocket Ride: Miami Entrepreneur Turns $5,000 to $500,000! BlockDAG Mirrors the Success ...

SEC Charges Novatech with Fraud in $650 Million Ponzi Scheme

Liquidators Pursue $1.3B From TerraForm Labs After Three Arrows Capital Collapse: Report

Bitcoin’s rally might be setting up for a sudden drop

Trudeau’s rival pushes to ban CBDC in Canada, preserves cash use

Terra Classic & Terra Price Trigger a Rebound: Will LUNC & LUNA Price Maintain a 25% Upswing This...

Join our free newsletter for daily crypto updates!