Analysis: Ethereum gas fees drop to 5-year low, which may indicate that ETH price will bottom out in the medium term

Ryan Lee, chief analyst at Bitget Research, said recently: "Every time ETH's gas fee hits the bottom, it often means that the price has bottomed out in the medium term. After this cycle, ETH prices tend to rebound strongly, and when this moment coincides with a rate cut cycle, the market's wealth effect is full of possibilities." Lee said that Ethereum's gas fee has dropped to a five-year low, which can be attributed to the popularity of Meme and the migration of DApp interactive users to other faster and cheaper blockchains such as Solana and Layer 2. In addition, the Dencun upgrade has also improved network efficiency, thereby reducing gas fees. At the same time, due to lower fees, ETH destruction has decreased, which means that its supply has begun to increase. (CoinDesk)