Yesterday, the gas fees on the Ethereum network fell significantly to $11.21, which is about a 70% drop after surpassing $38. Also, the price of ETH has risen by 11.5% in the past 24 hours and is now trading around $1,500.
Ethereum Gas Fees Drops Significantly
Based on the data from Etherscan.io, the average cost per transaction on the Ethereum network now costs $10.80. The spike in transaction Fees on the network occurred about a week ago when the crypto market experienced what seemed like a huge sell-off. Therefore, on Feb 22, the price of Ethereum fell by 12% and traded below $1,700.
The price plunge extended to Feb. 28, when Ethereum dropped to about $1,300. However, the price of ETH is above $1,500 as of this writing. Similarly, Bitcoin has also made significant gains after dropping to a low of $43,000. Technical analysts expect Bitcoin to hit the $50,000 price mark soon enough.
Ethereum Price Rallies as Gas Fees Falls
Before the news of the drop in gas fees, many investors have largely ignored the network. This is due to its gas fees outburst and partly due to congestion issues caused by traffic surge. As a result, centralized alternatives became investors more preferred choice which led to an increase in the popularity of the Binance Smart Chain.
The decrease in gas fees has been linked to the new ETH improvement proposal released by Vitalik Buterin on Feb.26. The improvement which he called EIP-3298, proposes the removal of gas refunds for the “SSTORE” and “SELFDESTRUCT” functions in Ethereum’s London update.
As a result, the price of Ether has risen by 15% and is currently trading around $1,500. The proposed EIP-3298 is set to roll out in the second quarter of the year. If the implementation is approved, the crypto asset may be able to recover some of its lost market gains.