On November 9, 2021, the trading price of Ethereum was hovering within its highest trading zone. At that time, the average transaction fee for Ether was also at a very high figure.
The data shows that the trading price of Ether ended up surging as high as $62.84 on November 9, 2021. However, the fees for processing Ether transactions have taken a huge dip as shown by bitinfocharts.com.
Ethereum Fees are at a Lower Level
Compared to the past year, the gas cost of sending Ether to any other receiver costs a very low fee. The report suggests that the fee is as low as $2.87.
This means that it now costs 95.43% less than it used to cost whenever sending Ether. Whenever an Ether transaction is initiated, it is pushed with the help of the gas fee.
The users requesting the transaction are responsible for paying the gas fee so they can execute it without facing any kind of spam.
The Merge has played a Huge Role
The information shared by bitinfocharts.com shows that a significant decline was observed in the gas fees for Ether transactions after June 18, 2022.
However, the lower gas fee costs experienced an even greater reduction with the implementation of the Merge in September.
It was on September 15, when the Merge was deployed, which is the upgraded version of the Ethereum network. It is commonly known as ETH 2.0 and has reportedly converted Ethereum’s consensus to PoS.
Moreover, the upgrade has made significant changes to the scalability, efficiency, and security of ETH transactions.
The scalability of the Ethereum blockchain has increased tremendously. This means that more transactions can be processed in a single go at any given time.
By allowing many transactions to go through in a single instance, the Ethereum blockchain has very few chances of facing any latencies.
It is an assurance for the users that their transactions will be smooth, instantaneous, and without any losses. Back in November 2021, a user had to pay high gas fees to push their transaction ahead of the backlog.
It wouldn’t be a single user requesting that but many attempting to do the same thing over and over. Thus, the gas fees for Ethereum transactions continued rising.
The surge was so much that even a small transaction worth a few $10 would be charged a $60 gas fee.
With the recent upgrades and implementations, the gas fees for Ethereum transactions have been toned down at a tremendous rate.
As per data, the average gas fee charged for the processing of an Ether transaction costs less than $5.
The most promising thing is that in the past 175 days, the gas fees for ETH transactions have remained below the $5 mark.
There was only a single day in November when the gas fees for ETH transactions went over the $5 range. It happened on November 8, 2022, when the FTX crash happened.
Due to the crash, people started to move their cryptocurrencies from the exchanges into their private wallets or self-custody solutions.
With so many ETH leaving the exchanges at once and causing large traffic in the ETH blockchain, the prices were pushed over $5.
However, the occurrence was brief and the price reverted to less than $5 on the same day. Despite the brief spike, the average gas fee has remained under the $5 mark.
A look at the report shows that the minimum gas fee instances have remained under the $2 mark. The majority of the instances have hovered around the $3 range.
December has Gotten Even Better
Compared to November, the month of December is proving to be even more promising for Ether gas fees.
As per the data collected by etherscan.io, the average gas fee for ETH transactions is 21 gwei. This translates to around $0.48 per transfer.