Ethereum gas prices have fallen to their lowest level in five months. At the time of writing, the average gas price was 25 Gwei, or about $1.17. Since mid-January 2022, the average price of Ethereum gas has been falling. From about $52.46 per transfer in mid-January, the price of Ethereum gas fell by about 71% to a low of $15.13 per transaction in mid-February.
Today, according to data from bitinfocharts.com, the average transaction fee has dropped even further to $10.68. The last time ETH prices were this low was in mid-September 2021. One Twitter user wrote: “Never seen gas prices so low.”
Ethereum Gas Prices Fall: Good News for NFT Traders
Certainly, more than six months ago, Ethereum gas prices were enough to burn a hole in your pocket. So what is causing the price drop now?
First of all, what is a transaction fee or gas fee? Simply put, it is a payment to miners for performing complex calculations to confirm transactions on the blockchain. As activity on the Ethereum network grew, so did gas fees.
According to one report, a possible reason for the fall in the price of gas could be an increase in activity on the second level, or people switching to other networks. The report also suggests that the drop in gas prices could be directly related to the drop in NFT sales. For example, the report notes that “On February 12 and 13, OpenSea sees a short-term surge in volume, after which it drops sharply – the same goes for gas prices.”
At the moment this is just speculation. However, low gas prices should be good news for NFT traders.