Ethereum gas fees have plunged to their lowest level in over two years, making it much cheaper to use the network.
Dencun Upgrade Reduces Fees
The Dencun upgrade has optimized network usage, leading to a significant drop in transaction fees. Asset swaps, cross-chain bridging, and NFT minting are now much more affordable.
Impact on Ethereum’s Market
The low gas fees have raised questions about whether they are a permanent feature or a temporary dip. Some experts predict that fees could spike again in the future.
The decrease in gas fees has also reduced the deflationary pressure on ETH, indicating a potential shift towards a more inflationary trend in the short term.
Market Reaction
ETH’s price has been volatile, with an initial rise followed by a downturn. Crypto analysts suggest that liquidity is moving towards Bitcoin, potentially reducing investor interest in Ethereum.
Some analysts predict that Ethereum could fall further if the ETH/BTC pair breaks below a certain support level.
