High gas fees were once the biggest challenge investors faced using the Ethereum network. However, Ethereum has seen a steady decline in its gas fees, which have dropped by 90% in the last six months.

High Gas Fees Are a Thing of the Past 

According to the crypto data intelligence platform, Santiment, the average gas fee on the Ethereum network is currently $5.81, 90% less than what was charged in November 2021. According to Etherscan.io, gas fees are currently as low as $3.17.

On November 8, 2021, the average a user paid for a transaction was $62.85. In May 2021, gas fees hit their highest price of $69. Many experts attributed the spike in Ethereum gas fees in 2021 to the surge in the sales of NFTs on the Ethereum network. 

The migration of Ethereum from Proof of Work (PoW) to a Proof of Stake (PoS) consensus model and the rise in popularity of layer 2 protocols are some of the reasons for the decline in gas fees.

Ethereum set to rally in Q2 2022

With Ethereum building towards the Merge, bullish sentiment builds around the altcoin. Billionaire investor, Mark Cuban, has joined the growing list to express their excitement about the upcoming Ethereum 2.0 ‘merge.’

Backing the predictions, the Wall Street behemoth, Goldman Sachs, is now preparing to launch an OTC ETH options trading due to rising client demand. These developments have made many believe ETH will outshine its layer-1 competitors in Q2.

On The Flipside

Layer 2 protocols still offer cheaper, faster transactions than the Ethereum network, costing pennies in some instances.

Why You Should Care

Analysts at Santiment believe that the Ethereum price surge could result from the drop in transaction fees.

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