October 1, 2022

Between January 2021 and May 2022, the average gas fee charged by the Ethereum network was around $40. However on May 1, 2022, with the highest average daily gas cost of $196.638.

The Ethereum ecosystem’s most significant barrier to mainstream dominance is frequently attributed to the extremely high transaction fees — known as gas fees — required to complete a transaction. However, with Ethereum’s average gas fees falling to 0.0015 Ether (ETH), the narrative is about to shift.

The average transaction fee on the Ethereum blockchain has decreased to 0.0015 ETH or $1.57, a figure last seen in December 2020. However, beginning in January 2021, Ethereum’s gas fees skyrocketed as a result of the excitement surrounding nonfungible tokens (NFT), and decentralized finance (DeFi) as a promising bull market.

In November 2021, when many investors were complaining about exorbitant gas fees, Ethereum co-founder Vitalik Buterin published a cost-cutting and cap proposal to alleviate unprecedented strain on the network. Buterin proposed a short-term solution to reduce rollup costs by instituting a call-data limit per block to reduce ETH gas costs.

Summited by HotQA