Ethereum Gas Fees Reach Record Low Amid Market Downturn

According to Odaily, Ethereum's Layer 1 blockchain experienced a significant drop in gas fees, reaching a low of just 0.067 Gwei on Sunday. Data from Etherscan indicates that the average cost for executing a token swap is approximately $0.11, while NFT transaction fees are around $0.19. Although these reduced fees benefit users, analysts caution that excessively low fees may signal underlying issues within the Ethereum ecosystem. Since the Dencun upgrade in March 2024, which substantially lowered Layer 2 network fees, Layer 1 revenue has seen a sharp decline. This has raised concerns about the incentives for network security and sustainability. Critics argue that Layer 2 solutions are encroaching on the revenue of the main Layer 1 network.