Ethereum fees are at their lowest point in seven years, with them continuing to decline week after week. Tuesday, March 8th, the average L1 Ethereum gas fee (0.0042ether) was $10.89/transfer. However, the median-sized gas fees have dropped to levels that were not possible since August 2017.
L1 Ethereum Fees Plunge — Median-Sized, L2 Fees Follow
While L1 ethereum (ETH) gas fees are nowhere near below $1 per transfer, ether transaction fees are continuing to drop from January’s highs. It’s possible there’s been less on-chain transaction activity and ETH fees may have been alleviated by the increased use of L2 protocols like Optimism, Arbitrum, and Polygon.
The average cost of transacting on Ethereum’s blockchain is $0.42ETH, or $10.89 per transaction at the time this article was written. On August 4, 2021, the average Ethereum gas cost was 0.0042 ETH or $10.89 per transfer. This is seven months since Ethereum’s last low-end transaction. The median-sized fee for Ethereum is also low, according to data.
Current Ethereum blockchain gas fees are 0.0014 Ethereum or $3.73 each. These fees, both average and median size, are lower than what was recorded on January 10, 20,22. The average fee for transferring ethereum (ETH), was $52 per transaction on that date. Average ETH fees haven’t been below $1 per transfer since August 2020, and median-sized fees jumped over $1 that same month, 19 months ago.
The $3.73 median ether fee per transfer may seem cheap but ETH users who need to transfer more than this amount must use Layer 2 (L2) protocols. L2 users can expect to pay less than $1 for most L2 protocol options available right now.
Loopring is currently the most affordable L2 transaction fee at $0.06 per transfer. Loopring costs $0.64 to swap tokens. Loopring’s ETH transfer rate is followed by Zksync ($0.09), Polygon Hermez ($0.25), Optimism ($0.38), Arbitrum ($0.44), Boba ($0.58), and Aztec ($1.50).
While it costs $0.64 per transaction to swap tokens via Loopring, it’s only $0.22 per swap leveraging the L2 protocol Zksync.
Are you concerned that Ethereum fees may continue to fall in the coming weeks? Please comment below to let us know your thoughts on this topic.
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