Analysis: Ethereum’s daily average gas fee and daily destruction volume hit new lows

CryptoQuant analyst EgyHash posted that Ethereum’s average daily gas fee has recently been only 2.9 Gwei, a record low, and its average daily fee in U.S. dollars has also hit a multi-year low of only $0.85. As a result, the average daily destruction rate of Ethereum has also dropped to a historical low, with a single-day destruction of 115 ETH. Although Ethereum’s gas fees and efficiency rates have dropped sharply, its average daily transaction count has remained flat or increased significantly compared to the same period in the past two years. This drop may be related to the Dencun upgrade that was activated on Ethereum on March 13 this year. While low fees are good for users, they are not for investors, especially given that a large portion of Ethereum’s usage is moving to its L2 network and the potential problems this can cause, such as user and liquidity fragmentation. Despite the approval of the Ethereum spot ETF, the price of ETH has been stagnant since the Dencun upgrade. During this period, the supply of ETH increased by more than 197,000 coins (worth over $500 million), while its price fell by 35%.