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Ethereum’s gas prices and whale activity have seen a notable decline as its price dropped below the $2,600 mark.
According to CryptoQuant, the daily mean gas price on the Ethereum network plunged to an all-time low of 2.9 Gwei, worth around $0.026, on Aug. 18. Currently, the average ETH gas price has slightly increased to 3 Gwei.
Ethereum Gas Price Hits New All-Time Low
“Despite the approval of Ethereum ETFs, the price of $ETH has been struggling since the Dencun upgrade. ETH supply has increased by more than 197,000 ETH, and its price has fallen by 35%.” – By CryptoQuant
Data indicates that only 115 ETH, worth around $300,000, were burned as gas prices hit an all-time low. ETH’s price consolidated around the $2,600 mark amid market-wide uncertainty.
One of the main reasons behind the steep decline in Ethereum gas prices is the Dencun upgrade, launched in March this year. Dencun allowed layer 2 networks to execute their data blobs on the Ethereum mainnet, causing a significant fee drop.
However, a CryptoQuant analyst suggests that the declining network fees could potentially lead to long-term issues like “user and liquidity fragmentation.” The analyst also noted that the ETH supply has increased by 197,000 tokens while the price has plunged by 35% despite the approval of spot ETH exchange-traded funds in the U.S.
Ethereum’s whale activity has also been decreasing alongside its fees. According to data from Santiment, the number of whale transactions consisting of at least $100,000 worth of ETH has consistently fallen over the past week, dropping from 5,371 on Aug. 12 to 2,138 unique transactions at the time of reporting.
ETH is down by 3% in the past 24 hours and is trading at $2,580 at the time of writing. Its daily trading volume, however, has increased by 32%, surpassing the $10 billion mark.
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