Ethereum Fees Drop After May’s Memecoin Mania

It’s been just revealed that Ethereum fees are dropping following the memecoin mania. Check out the latest reports about this below.

The cost of using the Ethereum blockchain, known as the gas fee, has been decreasing and is now approaching a two-month low. This comes after a period of high fees during the memecoin trading craze last month.

Based on on-chain data from The Block, it has been reported that the average transaction fee on Ethereum has significantly decreased.

The current seven-day moving average shows a fee of $7.34, which is a significant drop from last month’s high of over $20. In fact, the last time fees were this low was on April 17, when the metric hit $6.57.

According to data provided by Dune Analytics user @hildobby, when measured in gwei, a denomination of ether equal to one billionth of a whole coin, the story remains consistent. It shows that the daily median gas price has decreased from a high of over 140 gwei last month to 24 gwei. This drop brings the prices back to the same level as they were on April 12.

As The Block online publication notes, “driving gas prices in May was the rise (and return) of memecoin trading, which pushed The Block’s DEX to CEX ratio — a comparison of spot trading volumes on decentralized exchanges against centralized exchanges — to an all-time high of over 20%. The ratio has since fallen back under 15%.”

According to Glassnode, a leading cryptocurrency analysis firm, the price of Ethereum (ETH) is expected to rise due to the growth of two emerging sectors in the digital asset industry.

According to a recent report by Glassnode, crypto gaming and staking have become essential aspects of the Ethereum ecosystem after gaining significant popularity in 2022 and exploding in 2023, respectively.

“Over the past two years, two new sectors have emerged within the Ethereum ecosystem; GameFi and Staking. Each sector has sparked varying degrees of investor interest, with GameFi almost overtaking DeFi in mid-2022.”

The same notes continued and said the following: “The Staking industry (represented here via the tokens of Liquid Staking Protocols) has been on the rise since the beginning of 2023, with the aggregated market cap exploding from $505M in Jan-2023 to over $3.20B in Apr-2023.”