Ethereum’s Gas Fees Remain Low While Network Turns Inflationary

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Ethereum's Gas Fees Remain Low While Network Turns Inflationary

According to recent metrics, Ethereum’s onchain fees continue to stay impressively low, with the average transaction cost this weekend at just 0.00029 ETH or $0.743. Etherscan reports that even high-priority fees are under 1 gwei, sitting around 0.972 gwei as of press time. Additionally, ultrasound.money data reveals that Ethereum’s issuance rate is currently inflationary, clocking in at 0.734% per year.

Ethereum’s Onchain Costs Drop Below $1 Amid Inflationary Shift

Average onchain fees on the Ethereum blockchain have remained notably low, as shown by bitinfocharts.com metrics. Over the past 90 days, with just a few brief exceptions of minor spikes, the average fee rate has been on a steady decline. On Aug. 8, the average onchain fee for Ethereum transactions was $2.452, but today, it has dropped to under a dollar at $0.743.

The historical median fee is even lower; on Aug. 8, it was $0.786, and today, it’s cruising at 0.000079 ETH or $0.198 per transaction. Etherscan’s gas tracker highlights even smaller payments, with transactions costing less than a single gwei. As of Aug. 31, Ethereum transfer fees range from 0.763 to 0.972 gwei, translating to $0.05 to $0.06 per transaction.

A high-priority coin swap will set an ETH user back $0.95, selling a non-fungible token (NFT) costs around $1.60, and bridging between networks will cost about $0.31, according to Etherscan’s data. Since the Ethereum Dencun upgrade, Ethereum has once again become inflationary by 0.734% per annum. This upgrade made transaction fees up to four times cheaper, significantly reducing the amount of ETH being burned via transaction fees.

The shift to an inflationary status is closely tied to the evolving dynamics of Ethereum’s network activity. As layer two (L2) solutions alleviate congestion on the mainnet, fewer transactions are processed directly on Ethereum, leading to reduced fee burning. This change in network usage underscores the delicate balance between scalability and maintaining Ethereum’s deflationary economic model.

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