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<p>The post <a href="https://coinpedia.org/news/ethereum-gas-fees-drop-to-five-year-low-bullish-signal-for-ether/">Ethereum Gas Fees Drop to 5-Year Low: Bullish Signal for ETH Price?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Ethereum’s gas fees have dropped to their lowest levels in five years, sparking hopes for a possible price rebound soon. Ryan Lee, chief analyst at Bitget Research, notes that when Ethereum gas fees fall significantly, it often signals a price bottom for ETH in the mid-term.</p> 
<p>Historical trends back up this idea, suggesting <a href="https://coinpedia.org/news/is-ethereum-eth-price-poised-for-a-major-rebound-can-it-hit-3k/">Ethereum</a> might be headed for a strong recovery soon. Lee’s data shows that each time gas fees see a sharp decline, ETH prices tend to bounce back.</p> 
<h2 class="wp-block-heading" id="h-ethereum-gas-fees-plunge">Ethereum Gas Fees Plunge</h2> 
<p>Recently, Ethereum’s gas fees—the cost to process transactions on the network—fell to as <a href="https://etherscan.io/chart/gasprice">low as 0.6 gwei</a>, with some low-priority transactions costing 1 gwei or even less. This represents a massive 95% drop from the 83.1 gwei seen in March, during a period of high network activity.</p> 
<p><strong>What’s Causing the Drop?</strong></p> 
<p>This steep decline is mainly due to less demand for Ethereum’s block space and a shift toward cheaper alternatives like Solana and Layer 2 solutions. These platforms have drawn some activity away from Ethereum, easing pressure on the network.</p> 
<p>As fees drop, Ethereum’s supply has increased. Fewer transactions are being processed and burned, resulting in 16,000 ETH—worth around $42 million at current prices—being added to the total supply last week. This contributes to a 0.7% growth in Ethereum’s supply this year.</p> 
<h2 class="wp-block-heading" id="h-how-the-dencun-upgrade-plays-a-role">How the Dencun Upgrade Plays a Role</h2> 
<p>The sharp drop in fees is also tied to<a href="https://coinpedia.org/news/massive-eth-supply-surge-how-the-dencun-upgrade-is-changing-the-game/"> Ethereum’s Dencun upgrade,</a> which made the network more efficient and lowered transaction costs. Additionally, activities like meme coin trading and DApp usage have shifted to other blockchains, further reducing demand on Ethereum. </p> 
<p>For example, Solana-based apps like Pump have recently outpaced Ethereum in daily fee generation.</p> 
<h2 class="wp-block-heading" id="h-what-does-this-mean-for-ethereum-s-price">What Does This Mean for Ethereum’s Price?</h2> 
<p>Ryan Lee believes these low gas fees might signal that<a href="https://coinpedia.org/price-prediction/market-price-prediction-ethereum-2019/"> ETH prices </a>are nearing a bottom, potentially setting the stage for a recovery. If this trend aligns with interest rate cuts, it could create a wealth effect in the market, further boosting Ethereum’s price potential.</p> 
<p>Also Check Out: <a href="https://coinpedia.org/news/crypto-news-today-is-toncoin-headed-for-a-crash-despite-binance-buzz/" target="_blank" rel="noreferrer noopener">Crypto News Today: Is Toncoin Headed for a Crash Despite Binance Buzz?</a></p> 
<p><strong>Gas fees are down, but is the party over for altcoins? Weigh in with your opinion.</strong></p>

Ethereum Gas Fees Drop to 5-Year Low: Bullish Signal for ETH Price?

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