Ethereum

2024

Optimism

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According to a recent <a href="https://x.com/cryptoquant_com/status/1825470168459329824">CryptoQuant</a> analysis, the Ethereum gas price has reached a new all-time low.&nbsp;
Ethereum's daily mean gas price fell to a new all-time low of 2.9 Gwei, while its daily mean fees in USD fell to a new multi-year low of $0.85.
As a result, Ethereum's daily average burn rate decreased considerably. According to CoinGecko's most recent study, ETH emissions exceeded burns in 2024, with 540,958 ETH emitted and 465,657 ETH burned, for a net addition of 75,301 ETH to the network.
<blockquote>
 <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a> Gas Price Hits New All-Time Low“Despite the approval of Ethereum ETFs, the price of <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> has been struggling since the Dencun upgrade. ETH supply has increased by more than 197,000 ETH, and its price has fallen by 35%.” – By <a href="https://twitter.com/EgyHashX?ref_src=twsrc%5Etfw">@EgyHashX</a>Link 👇<a href="https://t.co/GZ1Dt0NStv">https://t.co/GZ1Dt0NStv</a> <a href="https://t.co/PtbjWGyUzc">pic.twitter.com/PtbjWGyUzc</a>— CryptoQuant.com (@cryptoquant_com) <a href="https://twitter.com/cryptoquant_com/status/1825470168459329824?ref_src=twsrc%5Etfw">August 19, 2024</a>
</blockquote> 
Despite a significant decline in Ethereum gas costs and burning rate, daily average transactions have remained steady or climbed slightly, when compared to the same period in the prior two years.
This drop is most likely due to the Dencun update, which was triggered on Ethereum on March 13 of this year. The upgrade included "Blobs," a new type of transaction that enables layer-2 networks such as Arbitrum, Base, Optimism and others to publish data on Ethereum, with significant fee reductions of up to 100%.
<h2 id="is-ethereum-facing-new-challenge">Is Ethereum facing new challenge?</h2>
While low fees benefit users, they may not benefit investors, especially considering the significant portion of <a href="https://u.today/ethereum-eth-gas-fees-at-multi-month-lows-data-says">Ethereum's</a> usage being offloaded to its layer-2 networks, and the potential problems this could generate, such as user and liquidity fragmentation.
Despite the launch of Ethereum ETFs, the price of ETH has declined after the Dencun update. ETH's supply has surged by about 197,000 ETH worth $500 million, while the price has dropped by 35%.
At the time of writing, ETH was down 2.79% in the last 24 hours to $1,585, and down 5% weekly.&nbsp;
According to the most recent CoinShares report, digital asset investment products saw slight inflows of $30 million in the past week, as recent macroeconomic data indicated that the Fed was less likely to decrease interest rates by 50 basis points in September. Last week, Ethereum had only $4.2 million in inflows, despite a flurry of activity among ETF providers.

ETH Gas Price Crashes: Is Ethereum Facing New Challenge?

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