Ethereum Gas Prices Reach Historic Low of 1 Gwei

Krutika Adani

Average Gas Price at 1 Gwei

Transaction costs on Ethereum have reached a record low after gas prices crashed to 1 Gwei. An average transaction now costs $0.2, compared to $15 three months earlier.

What Is Gwei in Gas Price?

Gwei is the computational unit measuring gas prices on EVM-based chains. It is different from Wei, the smallest unit of Ethereum (ETH).

Why This Fall?

The fall in gas prices comes after the Dencun Upgrade, which introduced on-chain zero-knowledge storage on Ethereum, called blobs. The blobs made it easier for Ethereum to process transactions in blocks at once rather than individually.

Gas Guzzlers Lower Their Consumptions

Smart contracts like Uniswap D3, which used to consume a lot of gas, which then led to high gas prices, are using blobs, and hence, their demand for gas has dropped.

Will Ethereum Gas Price Go Zero?

The cost of transactions will always remain positive. Also, these gas prices are expected to settle soon and not further down.