L1 Ethereum network fees drop to 2-month low

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2022-05-21 03:04:29

Ethereum network fees have plummeted this week, below $10 per transaction. This is the lowest level since early March 2022. Cheaper fees on layer one (L1) made layer two (L2) fees between $0.02 and $1.13 per transaction.

Gwei gas fees on Ether drop to the lowest in 2 months

This comes after a brief spike that took place during “Terra’s disaster week”. There was a time when Gwei gas fees went up to $31.19 because the volume of investor token discharges congested the Ethereum network.

With the average network fee reduction this week, both L1 and L2 usage average fees have also dropped significantly. As of now, the average network fee for transactions on Ethereum is 0.0012 ether (equivalent to $2.59).

According to Etherscan data, a transaction on Opensea can cost around $9.72, a swap on a decentralized exchange (DEX) would require $8.86 and an ERC20 token transfer would require $2.60.

Etherscan network fee on May 17, 2022

Since Ethereum’s L2 fees decrease with on-chain transactions, Ethereum L2 fees are also significantly cheaper. Each transaction on the Metis network costs only about $0.02 and only about $0.10 to swap tokens.

While Metis is the cheapest L2, Loopring transaction fees hover at $0.03 and token swaps cost $0.52. Transferring funds on Zksync takes around $0.05 and token swaps require $0.13. The most expensive L2 right now is Arbitrum One, as the transaction fee is around $0.25 and the token swap costs about $0.35.

Ethereum fees were lower as the hashrate hit an all-time high (ATH) on May 13, 2022, at block 14,770,231. The network’s computing power hit 1.27 petahashes per second (PH/s) that day and continues to soar.

The ETH price has dropped about 58% since ATH but is still up more than 482,570% since October 20, 2015, about six years ago. It currently accounts for 19.2% of the total net worth of the entire crypto economy, with a market capitalization of around $246 billion at the moment.

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