Average ETH gas fees have dropped 50% since October

Ethereum (ETH), the second cryptocurrency, is often criticized for its high transaction fees (gas). At the same time, the average transaction fees decrease for six weeks in a row.

Average ETH gas fee reduced by 50%

ETH gas, i.e. the flexible commission that is charged for all Ether and ERC-20 transactions, has been declining since the end of October, according to third-party providers.

Source: YCharts

The last peak measured on October 28, 2021 was more than 190 Gwei. Since then, the average gas value has lost more than 50%.

Typically, the dynamics of gas charges are related to the activity of ETH and ERC-20 holders. The more operations, the higher the gas filling.

The unusually negative dynamics of the average gas fees can therefore be attributed to the declining activity of the ETH, which makes it less attractive for traders and contributes to the general stagnation of the money markets.

L2 platform loses TVL

The medium-term demise of Layer 2 platforms in terms of Total Value Locked (TVL) is another interesting development dominating the Ethereum (ETH) segment.

According to leading Layer 2 tracker L2Beat, the aggregate TVL of mainstream scalability protocols increased tenfold in the three months from late August to late November.

Source: L2Beat

Then the volume dropped from $ 7.1 billion to $ 5.5 billion in just two weeks. The Arbitrum Network, the optimism-based Boba Network, dYdX and Loopring account for half of this volume.

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