If you have been planning to buy Ethereum NFTs, then this is likely a good time, at least in terms of the gas fees involved. ETH gas fees have been dropping significantly in recent weeks, dipping as low as under $3. Let’s take a closer look at the current ETH gas fees and why they are becoming cheaper.
Ethereum Gas Fees are Dipping
As of 12:00 pm on Sunday, ETH gas fees dropped to $2.96 per transaction. Reportedly, this is the lowest it has been in over ten months. A similar price drop was seen last year in July when the crypto market crashed.
Furthermore, the median ETH gas prices are much cheaper. A single median-sized Ethereum transaction now costs as low as $1.56. To put things in perspective, on March 8 this year, the figure was $3.73 per transfer.
As a matter of fact, Ethereum gas fees have been dropping in recent months. In March as well, the values dropped significantly.
Why Are ETH Gas Fees Cheaper?
To understand why ETH gas fees are cheaper, let’s first discuss what exactly gas fees are. In a nutshell, this is the fees we pay to Ethereum miners to validate transactions on the network. As the network activity soars, so do the transaction fees. And vice versa—which is likely what is happening now.
A recent report by the market intelligence firm, Santiment suggests the cheaper gas fees are a result of the decline in interest in the Ethereum network.
“Ethereum fees are so low last days,” the report wrote. “We could even notice they’ve been that low before previous bottoms…Low fees mean very little activity, no one is interested to do anything.”
Currently, Ethereum users are eagerly waiting for the merge. This will further lower ETH gas fees and minimise its environmental impacts as well.