According to BitInfoCharts data, the average transaction fee (gas fee) on Ethereum is $2.15. This is the lowest average wage since December 20, 2020, when the average wage was $2.

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Transaction fees haven’t exceeded $2 for most of 2020, but when Bitcoin’s bull run hit its peak this year, things went wild and took Ethereum on a big journey.

ETH transaction fees soared to $69.92 on May 12, a day after Ethereum hit an all-time high of $4,164. Exactly one week later, another peak occurred when transaction fees soared to $59.57.

What Does All This Mean?

Fees are at a low level as demand for Ethereum is low. The price of ETH is currently hovering around $1,800.

The same thing happened to Bitcoin’s average transaction fee, which dropped 24% overnight to $5.10. Trading at $33,300, the price of Bitcoin is currently about half of the all-time high it set in April. According to Ycharts, Bitcoin’s transaction fee is 330% lower than this time last year.

While low transaction fees are bad for miners and indicate low demand for the network, they are good for anyone who makes complex transactions through Ethereum-based decentralized finance protocols like Uniswap or Synthetix.

Fees could drop further following the arrival of Ethereum 2.0. This update of the Ethereum blockchain may take years before it is fully implemented, but it promises faster and cheaper transactions and greener mining.

This is partly because the network will move from the current consumption-based proof-of-work consensus mechanism, which requires powerful hardware to verify transactions, to proof-of-stake, where most ETH stakers verify transactions.

A successful update could help Ethereum make a strong comeback. But if demand continues to rise, wages could rise once again.