- The average Bitcoin transaction fee hit its lowest point since October 2023.
- The average price of Ethereum gas has dropped by over 92% after the Dencun upgrade.
Amidst the most volatile week of 2024 in the cryptocurrency market, the transaction costs for Bitcoin and Ether hit a new low, the lowest in several months.
With a low of $1.93 per transaction on June 23, the average Bitcoin transaction fee hit its lowest point since October 2023. The lack of competition and limited network activity is shown by the Bitcoin network’s cheap fees.
When the market is very volatile, particularly when prices are going up, the transaction fees on the Bitcoin network tend to skyrocket. With more people speculating on the market value of cryptocurrencies, competition for block space is heating up.
Thus, costs have increased in tandem with every significant bull run since 2012, with the exception of the 2021 bull run, during which Bitcoin (BTC) prices reached $69,000 but transaction fees stayed relatively low.
Similar Case with Ether
Furthermore, gas fees for Ethereum have dropped to a new low, with prices as low as 1 gwei—the lowest they’ve been in years. At the moment, 4.5 gwei is the gas fee on the Ethereum network. On the Ethereum network, one may purchase and sell products and services using Gwei, a denomination of Ether. One gwei is equivalent to one-billionth of ETH.
Due to transactions shifting from Ethereum’s base layer to its layer-2 network with the March Dencun upgrade, the gas fee on Ethereum is quite cheap. The average price of Ethereum gas has dropped by over 92% after the Dencun upgrade.
Layer2 Insider claims that the layer-2 networks made $950,000 in the last week. As per data from CMC, several altcoins saw losses of double digits as the price of Bitcoin fell below the $62,000 mark.
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