- Ethereum supply is inflating despite relatively high throughput.
- Average fee has nosedived to $1.12 per transaction, lowest since October.
- Ether sustained above $3,200 on Sunday, up 4% in the past seven days.
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
The issue seems to have de-escalated with Ethereum’s average fee level dipping to $1.12 per network transaction. This is one of the lowest levels noted since October 18.
Ethereum transaction fee declines
Data from Ultrasound Money shows that Ether’s circulating supply has surged, climbing to the highest level witnessed since March. A little over 120 million Ether is in circulation now and the sharp increase in supply can be attributed to the consistent decline in burn rate, in the past two weeks.
Gas fees is currently 7.19 Gwei, up from a low value of 4.48 Gwei, as seen on Ultrasound.money. Gas fees is currently $0.62, as seen in YCharts, down from the May 2023 peak of $3.788.
Ethereum gas fees
The Ethereum supply chart shows inflation, and the recent increase sprung on ETH holders as a surprise, after five months of steady deflation. The ETH supply chart below shows the sudden increase in supply.
ETH supply
These catalysts have failed to have a significant impact on Ether price. The altcoin has sustained above $3,200 on Sunday, after relatively less significant moves since the Bitcoin halving. ETH holders are awaiting the Securities and Exchange Commission’s (SEC) decision on Spot Ether ETF and this is likely to emerge as the most significant catalyst for Ethereum.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.