Ethereum Gas Fees Hit a 5-Year Low, Signaling Potential Price Rebound for ETH
- WBOYOriginal
- 2024-08-17 00:24:10874browse
Gas fees dropped 95% due to reduced demand and shift to cost-effective blockchains. Analyst Ryan Lee suggest low gas fees might indicate a price
Ethereum gas fees have reached their lowest levels in five years, hitting as low as 0.6 gwei for some transactions. This marks a 95% decrease from the 83.1 gwei gas fees observed in March.
The reduced demand for Ethereum block space and a shift towards more cost-effective blockchains have contributed to this sharp decline in fees.
As a result of the lower fees, there has been a significant increase in ether’s supply. With fewer transactions being processed and burned, approximately 16,000 ETH (around $42 million at current prices) was added to the total supply over the past week. This uptick contributes to an estimated 0.7% growth in ether’s supply this year.
According to Bitget Research’s chief analyst, every time Ethereum gas fees drop significantly, it often signals a price bottom for ETH in the mid-term.
This trend, backed by historical data, suggests that Ethereum might be poised for a strong recovery soon.
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