Data reveals that Ethereum's average gas prices have been rapidly declining since the beginning of the year, dropping from 218 Gwei on January 10 to 40.82 Gwei on March 9.
Gas fees for transactions on the Ethereum blockchain have fallen to their lowest point since August 2021, though costs remain relatively high.
According to Coinmetrics (shared by CryptoRank Platform), the seven-day moving average cost for Ethereum transactions totaled $11.14** as of March 9, returning to mid-2021 levels—before the dramatic surge to **$55 later that year.
"Since August 2021, transaction costs on the Ethereum network have never been this low. Notably, gas prices stayed in this range for about three months before spiking, a trend experts attribute to rising interest in NFTs and DeFi ecosystems."
— CryptoRank Platform (@CryptoRank_io) | March 9, 2022
At the time of writing, network congestion appears minimal:
- Slow confirmation transactions: ~30 Gwei ($1.53)
- Fast confirmation transactions: ~32 Gwei ($1.64)
YCharts data further illustrates the rapid decline in Ethereum’s average gas prices, plummeting from 218 Gwei on January 10 to 40.82 Gwei yesterday.
Why Are Gas Fees Dropping?
Ethereum faced criticism throughout 2021 due to soaring gas fees, driven by explosive growth in NFTs and DeFi.
The recent reduction in congestion and fees appears linked to declining speculation in NFTs and DeFi:
Top 10 Ethereum NFT markets: 9 out of 10 saw decreased trading volume in the past 30 days.
- LooksRare (ranked #1): -78.27%
- OpenSea (ranked #2): -34.75%
- SuperRare & Rarible: -73.29% and -80.65%, respectively.
DeFi projects are also struggling:
- 8 out of the top 10 projects reported losses in Total Value Locked (TVL) and token prices over the past month.
👉 Explore real-time gas fee trends
FAQs
Q: Why did Ethereum gas fees surge in 2021?
A: High demand for NFT trading and DeFi protocols congested the network, driving up transaction costs.
Q: Will gas fees remain low in 2024?
A: While current trends suggest stability, fees could rise again with renewed interest in NFTs or DeFi.
Q: How can users minimize gas fees?
A: Schedule transactions during low-congestion periods or use Layer 2 solutions like Optimism or Arbitrum.
Q: What’s the cheapest time to transact on Ethereum?
A: Typically late-night (UTC) or weekends—check Etherscan’s gas tracker for live updates.
👉 Stay updated on Ethereum’s latest developments
Data sources: CryptoRank Platform, YCharts, DappRadar.