Ethereum gas fees, a major obstacle to mainstream adoption, have reached all-time lows recently. The average gas price dropped to 8.8 gwei, surpassing the previous record of 8.9 gwei. This decline can be attributed to the increased usage of layer 2 scaling solutions like Optimism and Arbitrum, which process transactions off-chain and reduce congestion on the Ethereum network. These scaling solutions have experienced a surge in adoption and value, with the total value locked in L2 networks reaching $10.5 billion, more than double from the previous year. In contrast, Ethereum’s total value locked has decreased by over 30% to $20 billion. The drop in transaction volumes and active users on Ethereum, due to the broader crypto market slump, has also contributed to the decrease in gas fees. Ethereum’s average weekly transactions have decreased by nearly 20% in the past year, while the average number of active Ethereum addresses has dropped by over 20%.

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Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	0
People	None
Companies	Optimism, IntoTheBlock, Ethereum, L2Beat, Etherscan, Arbitrum
Currencies	Ethereum
Securities	None