The gas fees on the Ethereum network, which are the fees that users must pay in order to send transactions to the blockchain, have crashed to levels not seen in 6 months, The Block reports.
As a result, the current fee amounts to $4.5, while users had to pay on average almost $45 last month, which represents a 90% decline in just one month.
It seems that the sharp decline in the average gas fees on the ETH network is the result of several factors. Firstly, the number of transactions on the Ethereum blockchain have declined during the last weeks, dragged down by the reduction in the number of transactions associated to the NFT and DeFi markets.
In addition, the increasing use of Polygon, a layer 2 solution offered as an alternative to Ethereum, might also be behind the decrease in the number of transactions on the Ethereum blockchain.
Finally, the growing use of flashbot transactions may have also contributed to the decline in the average transaction fees. Why? Becase flashbot transactions allow traders to directly communicate with miners, reducing the number of spam transactions on-chain.