Ethereum Gas Fees Cheaper Than Ever, Under $3 Per NFT Transfer

05/30/2022By: L, Laura

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If you’ve been planning to buy Ethereum NFTs, then this might be a good time to do so, at least as far as the gas fees involved are concerned. In recent weeks, ETH gas fees have been dropping dramatically, to as low as under $3. Let’s take a closer look at the current ETH gas fees and why they’re getting cheaper.

 

ETH Gas Fees are Dropping

As of 12:00 p.m. Sunday, ETH gas fee dropped to $2.96 per transaction. This is reportedly the lowest level in more than a decade. A similar price drop was seen last July when the cryptocurrency 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 Ethereum Gas Fees Getting 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 market intelligence firm Santiment suggests that cheaper gas fees are the result of declining 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 awaiting the Merger. This will further reduce the gas fees of ETH and minimize its impact on the environment.