Ethereum Fees Hit Lowest Since 2020

In 43 days, the Ethereum network could finally see a complete transition from proof of work (PoW) to proof of stake (PoS) through The Merge. Meanwhile, over the past 38 days, Ethereum layer-1 (L1) on-chain transaction fees have dipped below the $5 mark and dropped even lower at the end of July.

At the time of writing, the average Ethereum network fee is 0.00086 Ether, or $1.46 per transfer. The average size fees are even less, as statistics show that transfer fees have been as low as $0.21 to $0.576 per transaction on Sunday.

For quite some time now, the cost to transact on the Ethereum network has been much lower than usual. In fact, the average Ethereum network fee on Sunday (August 7) is 0.00086 Ether or $1.46 per transfer, a low not seen since December 12, 2020.

While the average Ethereum network fee is around $1.46 per transfer, statistics from etherscan.io Gas Tracker indicate that gas fees are between 5 and 6 Gwei per transfer, or $0.21 to $0.32. Gas Tracker also shows that the cost to conduct a sale on OpenSea is between $0.73 and $1.10 per transaction, and decentralized swaps can cost anywhere from $1.88 to $2.82 per transfer.

To transfer ERC20 tokens like USDT or USDC, the estimated transfer cost is around $0.55 to $0.83 per transfer on Sunday. Data from bitinfocharts.com shows Sunday’s average fee of 0.00034 Ether or $0.576 per transaction. Ethereum transfers have been a major contributor to ETH burning since Ethereum Improvement Proposal (EIP) 1559 was released.

OpenSea has been the largest contributor to the 2,573,837 ETH destroyed to date. However, Ethereum transfers are currently the biggest contributors to Ether burning with 232,233 ETH to date. As the supply growth of ETH increases by 5.5 million per year, the burning mechanism of EIP-1559 destroys about 0.2 million ETH per year.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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