Significant Drop in Ethereum Gas Prices Reaches Lowest Level Since 2020

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Ethereum Gas Price Drops Significantly
Bitcoin Miner Income Also at Low Levels
According to data from The Block, the median Gas Price on the Ethereum mainnet dropped to below 3 gwei on Saturday, the first time this level has been seen since 2020.
There are two main reasons for this phenomenon. The first reason is that most of the transaction activity in the Ethereum ecosystem has migrated from the Ethereum mainnet to multiple L2 networks, significantly reducing on-chain transaction demand compared to the past. The other reason is that the “blobs” introduced on March 13 in the Ethereum mainnet’s Dencun upgrade have indeed reduced the cost of sending transactions on Layer 2 networks, leading to a steady decline in the median Gas Price since then.
Just a year ago, the median Gas Price for Ethereum was about 15 to 20 gwei, significantly different from the low point on Saturday. According to user @hildobby’s dashboard data provided by Dune Analytics, the highest Gas Price in 2024 occurred on March 5. The median Gas Price reached 83 gwei that day.
Due to the significant decrease in Gas Price, Ethereum’s burn rate has also dropped to the lowest level in 12 months. According to data from ultrasound.money, due to the low burn rate, Ethereum is currently experiencing slight currency inflation, with a seven-day average supply growth rate of 0.56% per year.
At the same time, influenced by the halving of block rewards and the decline in speculation, Bitcoin miner income has reached its lowest level in history over the past two months.
In addition to the halving, another possible reason for the low profit margin is the relatively small number of new wallets entering the Bitcoin ecosystem; the seven-day average of new Bitcoin wallet additions is currently at its lowest level since 2018, the first time in six years.