Lower Ethereum Gas Fees Fail To Spark More Network Activity

 Many people will be more than pleased to see Ethereum gas fees drop well below $2 these days. Moreover, the network is at a 14-month low for total gas usage. Unfortunately, there is also a massive drop-off in overall transactions, seeming to hint at a standstill for the ecosystem. 

Lower Ethereum Gas Fees Are A Good Thing

Users who used Ethereum to move funds around and paid over $200 in gas fees will sign up for sub-$2 gas fees any day. Some of these improvements can be attributed to EIP-1559, although there is also an overall decline in Ethereum activity lately. Whether that is due to the ETH price falling off a cliff is a matter of debate, as the trend was visible well before the bar market gained momentum. 

For all intents and purposes, it is good to pay under $2 in Ethereum gas fees for a transaction. Per ETHGasStation, one can complete most transactions for under $0.15, which is an even more welcome sight. It indicates Ethereum is viable for transactions again until the next major airdrop of NFT collection tries to upset the balance again. Any spike in network activity can have catastrophic consequences for the Ethereum gas price. 

Reaching a 14-month low in total gas usage further keeps costs in the more “normal” range. However, this steep decline in total gas usage since March 2022 is remarkable. The impact of EIP-1559 was somewhat expected, but going from roughly 4.2 million gas to under 3.472 million remains a steep decline. Many users welcome it with open arms, as it leaves more room for other projects to leverage Ethereum’s benefits and capabilities. 

As far as the gas guzzlers go, little has changed except for the ETH spent. Project Wyvern Exchange is still firmly in the lead, although DeversiFi 2 is putting in a good effort. It is worth noting that DeversiFi 2 still uses an average gwei of 692,000, indicating its smart contracts haven’t been optimized all that much. Universwap V2 remains well ahead of Tether, and Uniswap V3 tops USDC. Very interesting rankings, which seem to indicate Ethereum has plenty of transactions and activity.

Ethereum TX Count Keeps Dropping

With such low Ethereum gas fees, one would expect people to conduct more transactions on the network. Additionally, there should be an increase in dApp activity, primarily across NFTs and decentralized finance. None of that is happening these days, though, as Ethereum’s daily transaction count still declines. 

Ever since the peak of 1.7166 million transactions in April 2021, Ethereum has drifted lower and lower. Yesterday, the network had 958,874 transactions. It is remarkable to see the network hover close to that 1 million mark, although it struggles to surpass that psychological barrier regularly. 

Moreover, the Ethereum TX count has declined steadily since January 2022. Some may argue that is due to falling ETH prices, while others hint at NFT fatigue and a lack of DeFi appeal. Regardless, this is a crucial time for Ethereum to pick up the pace again. With lower Ethereum gas fees, the network has not looked this healthy in a while. Unfortunately, the transaction count tells a different story. 

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