For nearly two years, the average gas fee for a transaction on the Ethereum network hovered around $40, and on May 1, 2022, it was the highest average gas fee ever recorded at $196.38.
One of the only downsides to Ethereum and its network, which is holding back its dominance, is its sky-high gas fees.
Some even consider these gas fees to be a barrier to entry for people who do not have such high capital. However, in recent weeks the average price of gas fees has dropped to 0.0015 Ether (ETH), which is equivalent to about $1.57.
The drop in gas prices allows more people to enter the Blockchain, crypto and NFT space and therefore allows for mass adoption. Gas rates were so high for 2 years because of the hype behind NFT, De-Fi and that we were in a bull market.
These low gas rates allow new and old investors to start re-entering the market and rethink their investments.
Ethereum had previously reached a new all-time high of $4,300 in May.
During these last few years after the pandemic, due to the boom in NFTs and DeFi apps, coupled with high levels of demand caused the market to experience a considerable rise in prices increases in volume.
Demand drove up gas rates to 200 gwei for slow transactions, with fast transactions reaching nearly 500 gwei. Transactions of USD 50 or even USD 100.
This drop in transaction prices has been what much of the crypto community has expected from Ethereum since ETH 2.0 was promised.