ETH hits new high, Gas price drops by more than 40% within the month. Is Ethereum no longer congested?

A historic moment, double new highs.

However, while Ethereum has gradually set new highs, the average Gas price of Ethereum has continued to decline.

According to OKLink data, Ethereum transaction fees have continued to decline this month. In the past week, the average transaction fee on Ethereum was 0.007451 ETH/transaction, and the average Gas price was about 121 Gwei, down 42% and 45% respectively from the beginning of the month. On April 11, the average Ethereum Gas price was about 85.2 Gwei, a two-month low.

Is Ethereum no longer congested?

As we all know, with the explosive growth of DeFi, the transaction processing mechanism of "the highest bidder wins" was limited by TPS, which made the Ethereum network expensive and congested during the DeFi boom.

Gas fees have been increasing steadily since November last year, reaching a historical peak on February 23 this year, with the average transaction cost reaching a staggering 373 Gwei, about $82.8 at the current Ethereum price. So far, the average Gas price in April is about 135.7 Gwei, lower than February and March, but still higher than January.

Looking at daily volume data for decentralized exchanges (DEXs), we can find a possible reason for the drop in gas fees over the past few days.

Debank data shows that DEX trading volume has shown a downward trend since reaching a peak of $4.35 billion on February 23.

Ethereum DEX daily transaction volume in the past three months

So far, the monthly DEX transaction volume

At the same time, multiple Ethereum expansion plans have been launched one after another.

On March 24, the Ethereum ZK Rollup expansion solution Hermez Network was officially launched. This means that the Hermez mainnet has been launched and users can now transfer money at a lower gas cost. Hermez's technical director Jordi Baylina said that users can save about 90% of gas costs.

On March 23, the zkSync-based second-layer wallet RollupsWallet announced that its mobile app has been launched on the iOS App Store, with over 1,000 downloads in the first week. The RollupsWallet team said that the wallet is technically supported by zkSync (MatterLabs), its gas price can be reduced by two orders of magnitude, and it can also realize the instant transfer of Ethereum ERC-20 tokens.

In the NFT market, NFT trading platform OpenSea will integrate the Layer 2 expansion solution Immutable X. OpenSea's product director said: "Integrating Immutable X will allow OpenSea to provide users with a gas-free trading experience without sacrificing the security of the Ethereum network. Future game developers and OpenSea players will benefit from it.

Also worth looking forward to is that the EIP-3298 proposal initiated by Ethereum founder Vitalik - removing the rule of "executing SELFDESTRUCT to get gas fee reduction rewards" in the London upgrade, will also be implemented in July or August.