Explore Ethereum’s recent gas price drop, relieving users from rising transaction fees. Discover what caused this unexpected change and why transactions are cheaper.
The Ethereum network has undergone an enthralling shift in recent weeks. Gas prices on the Ethereum network have finally started to decline after reaching previously unheard-of heights due to the memecoin frenzy and maximum extractable value (MEV) bot activity.
Users who have struggled with skyrocketing transaction prices will be relieved by this large reduction in rates. But why did things shift so suddenly?
In May, Memecoin Frenzy surpasses ETH, WETH, and Tether
The memecoin craze began in late April and persisted into May, bringing a number of new memecoins to the market, including Aped (APED), Bobo Coin (BOBO), and others.
Even the top 10 gas-burning altcoins changed as a result of memecoin supremacy, with Troll (TROLL), APED, and BOBO replacing established tokens like ETH, Wrapped Ether (WETH), and Tether.
Early June saw a decrease in gas prices on the Ethereum network
During the first week of June, gas prices on the Ethereum network saw a noticeable drop. In comparison to last month’s peak of $20, the average gas price has decreased by about one-third to $7.34. According to Dune Analytics, the daily median gas price has dropped from nearly 140 gwei to 24 gwei.
While May saw the Ethereum memecoin fever, it was also a crucial month for Bitcoin Ordinals. These Ordinals, which have acquired a lot of traction, offer decentralized storage of digital art on the Bitcoin blockchain.
Pepecoin Drives the Billion-Dollar Market Surge for Ordinals
The popularity of Ordinals was demonstrated by the proliferation of new memecoins on the Bitcoin network, such as Pepecoin (PEPE), which has a market valuation of $1 billion.
By the end of May, after being introduced in January, Ordinals had grown significantly, with over 10 million inscriptions being recorded on the Bitcoin blockchain. In May, the fees for Ordinals inscriptions increased by 700% to 1,639 Bitcoin.
The total number of Ordinals inscriptions on the Bitcoin network increased significantly between December 14th, 2022, and June 4th, 2023.
On the other hand
- While the memecoin craze predominated on the Ethereum network, it also brought about an influx of subpar and probably fraudulent tokens, endangering investors and the network’s image as a whole.
- Experts are concerned about prioritizing speculative and volatile assets over more established and fundamentally sound cryptocurrencies in light of the movement in the top 10 gas-burning altcoins towards memecoins.
- Small artists and innovators may be discouraged from participating because to the huge increase in fees paid for Ordinals inscriptions on the Bitcoin network.
This breakthrough provides much-needed relief and enhances accessibility to the Ethereum ecosystem, where rising transaction fees are a major problem. Additionally, the growth of memecoins and the rising popularity of ordinals on the Ethereum and Bitcoin networks show how the cryptocurrency market is changing.