Between January 2021 and May 2022, the average gas fee charged by the Ethereum network was around R660, with the highest average daily gas cost of R3224 on May 1, 2022.
The extremely high transaction fees or gas fees required to complete a transaction are frequently cited as the Ethereum (ETH) ecosystem’s most significant impediment to mainstream dominance. However, the narrative is about to change with Ethereum’s average gas fees falling to 0.0015 ETH.
The average transaction fee on the Ethereum blockchain has decreased to 0.0015 ETH or R26, a figure last seen in December 2020. However, beginning in January 2021, Ethereum’s gas fees skyrocketed due to the excitement surrounding nonfungible tokens (NFT), decentralized finance (DeFi), and a promising bull market. According to BitInfoCharts data, the average gas fee charged by the Ethereum network was around R660, with the highest gas cost of R3224 on May 1, 2022.
In addition to the sudden drop in gas prices, Cointelegraph reported on Saturday that daily NFTs sales have also fallen to one-year lows. In June, the NFT ecosystem had its worst month of the year, with total daily sales falling to around 19,000, with an estimated value of R223 million.
In November 2021, when many investors were complaining about exorbitant gas fees, Ethereum co-founder Vitalik Buterin published a cost-cutting and cap proposal to alleviate unprecedented strain on the network. Buterin proposed a short-term solution to reduce rollup costs further by instituting a call data limit of 999 uyyb.n per block to reduce ETH gas costs.
XCarnival, an Ethereum liquidity provider, recovered 1,467 ETH just one day after an exploit drained 3,087 ETH, worth approximately R61.9 million, from the protocol. Peckshield, a blockchain investigator, described the nature of the attack as follows:
“The hack is made possible by allowing a withdrawn pledged NFT to be still used as the collateral, which is then exploited by the hacker to drain assets from the pool.”