Ethereum Transaction Fees Hit 2022 Lows as On-Chain Activity Subsides
Ethereum transaction fees have dropped to their lowest levels since 2022, according to data from Coin Metrics. This decline in fees can be attributed to a decrease in on-chain activity from NFT sales, meme coin trading, and the use of Telegram bots. The average fee for transfers on Ethereum is now $1.83, while the cost of token exchange via Uniswap is around $4.17. These fee levels have not been seen since November of last year.
As the demand for gas on Ethereum decreases, the platform has become inflationary. This is a rare occurrence since the Merge in September 2022. In the past week, Ethereum’s supply has increased by 4,092 ETH tokens, equivalent to approximately $6.6 million.
Waiting for the Next On-Chain Narrative
At the beginning of 2023, Ethereum experienced an increase in on-chain activity due to a spike in NFT trading volumes and the Blur token airdrop frenzy. However, on-chain activity has cooled since then, resulting in a flatline in Ethereum’s supply. The NFT sales volume has also declined since the second quarter of this year. The number of unique wallets buying and selling NFTs has decreased significantly.
Furthermore, popular Telegram bots like Unibot and Banana Gun have also seen a decrease in activity after a brief surge in July and August.
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