The average transaction fee on Ethereum has hit an all-time low at 4.81 Gwei, as reported by Ultrasound.money, marking a significant drop post the Merge event of 2022. This decrease is largely attributed to the shift of activity towards Layer-2 (L2) networks, especially after the Dencun upgrade, which reduced L2 fees and diverted transactions away from Ethereum’s base layer. IntoTheBlock highlighted that L2s now account for 82% of Ethereum’s transaction share, with platforms like Arbitrum experiencing a surge to over 2 million daily transactions. Additionally, Ethereum has become inflationary since the Dencun upgrade, challenging its ‘ultra-sound’ money narrative by increasing supply due to lower transaction fees and a reduced burn rate. This shift underscores a pivotal change in Ethereum’s ecosystem, emphasizing the growing importance and impact of L2 networks.
