Ethereum Gas Fees Plummets Amid Drop In Activity
Ethereum gas fees have decreased to 10.4 Gwei, the lowest amount since October 2022, according to data from Etherscan. The decrease in user activity in DeFi applications, non-fungible tokens, layer-2 networks, and Telegram bots is responsible for the drop in gas prices.
While Telegram trading bot activity declined in October, weekly trading volumes for NFTs have fallen to a two-year low. Additionally, large Ethereum entities like Uniswap and MetaMask have used less gas.
In addition, since September, as the amount of Ethereum burned has decreased, the deflationary supply of Ethereum has turned inflationary, with an annual inflation rate of 0.44%. Shortly after the Merge update, which saw Ethereum switch to proof-of-stake and create the burning mechanism, Ethereum last had such a low burn level in September of last year.
(With inputs from Shikha Singh)
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