Ethereum Gas Fees Hit Five-Year Low
Ethereum gas fees have hit a five-year low, industry research firm Kaiko reported.
According to Etherscan’s Gas Tracker, the average network fee on Ethereum’s layer 1 is currently 2.15 gigawatts, or just $0.13, the lowest level since 2019.
The drop in fees is due to increased layer 2 activity following the Dunkin upgrade in March, which helped reduce layer 2 transaction costs.
According to Ultrasound.money data, Ethereum’s supply has increased by 0.2% since early April, rising from 120.063 million to around 120.286 million.
This means that around 223,000 ETH, worth around $591 million at current prices, has been added to the market over the past four months.
However, the Ethereum supply remains below its level at the time of the merge in September 2022, indicating a slowdown in the previous rapid inflation.
Current data indicates that the ETH supply is increasing at a rate of 0.71% per year, based on the weekly timeframe.
This translates to about 16,500 ETH being added weekly at current burn rates.
The Ethereum supply is expected to fall below 120 million by the end of this year, supporting expectations of a continued deflationary path.