New Data Shows Ethereum Gas Fees have Started to PlungeFebruary 3, 2022
In the light of the new evidence from the Ethereum network trackers, positive news for the traders has been published. The Ethereum blockchain has become one of the busiest DeFi protocol hosts in the last few months. However, the network is often criticized for gas fee inflation and transaction congestion.
Furthermore, some users claim that Layer 2 solutions are becoming more popular. However, recently a third-party tracker is known as YCharts shared that during the last six weeks, the transaction fees have started to shrink for the channel. It means that the dynamic commission applied on the ETH and ERC-20 tokens has been continued to decrease during this time.
On account of the increasing gas fees, there are many Ethereum developers and DeFi projects that have migrated from the network. Under these circumstances, the total activity on the network has started to decrease. According to Ethereum activity trackers, for October, the peak gas fees on the ecosystem were recorded at 190 Gwei.
In comparison to the previous Ethereum network fee records, the October peak stands at six weeks low. The phenomenon of gas inflation is directly proportional to the amount of ETH and ERC-20 token activity or transaction volume on the network. The decreasing amount of transaction fees means that the interest of developers in using the network has started to decline.
It seems that Layer 2 staking pools on the Ethereum network have also started to inch towards their peak stagnation. During the latest mid-term, the TVL or total value locked in Layer 2 Ethereum staking pools recorded the highest decrease.
L2Beat is an Ethereum Layer 2 tracker that recently pointed out that during the last three months, the total TVL among the entire scalability protocols inflated by ten times. However, now it seems that the pools have reached a state of oversaturation and started to readjust. In 2 weeks, the TVL plunged from $7.1 billion to $5.5 billion. The statistics have been derived from top L2 pools like Loopring, Boba Network, Arbitrum Network, and dYdX, among others.