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Ethereum Gas Price Drops Significantly
Bitcoin Miner Income Also at a Low Level
According to data from The Block, the median gas price on the Ethereum mainnet fell below 3 gwei on Saturday, the first time it has been at this level 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 the Ethereum mainnet after the Dencun upgrade on March 13 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 of Ethereum was about 15 to 20 gwei, significantly different from the low point on Saturday. According to user @hildobby’s dashboard data on Dune Analytics, the highest gas price in 2024 occurred on March 5, when the median gas price reached 83 gwei.
Due to the significant decrease in gas price, the burn rate of Ethereum has also dropped to its 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.
Meanwhile, influenced by factors such as the halving of block rewards and the decline in speculative frenzy, Bitcoin miner income has reached historic lows in the past two months.
In addition to the halving, another possible reason for the low profit margin is that the number of new wallets entering the Bitcoin ecosystem is relatively low; the seven-day average of new Bitcoin wallet additions is currently at its lowest level since 2018, the first time in six years it has been so low.
