Ethereum network transaction fees have recently hit a seven-month low, dropping to $1.7 per transaction on May 12. This decrease in fees is attributed to the growing popularity of layer-2 networks for frequent transfers. Data from BitInfoCharts shows that Ethereum’s average transaction fee dropped to $1.7, a level last seen in October 2023 when ETH price was below $2,000.
The implementation of Ethereum’s Dencun upgrade has also led to a significant drop in fees on layer 2 networks, making them more appealing for daily use. According to L2Fees, swap token operations on main layer-2 networks now cost less than $0.5, a stark comparison to Ethereum’s mainnet where users previously had to pay over $4 to swap tokens.
In response to the limitations of the current commission system, Ethereum co-founder Vitalik Buterin has proposed a multidimensional gas pricing model. This new approach aims to address inefficiencies in computing power utilization and reduce the risk of unsafe blocks being included in the blockchain. By shifting to a multidimensional gas model, Buterin believes that the network’s true constraints and capabilities can be better reflected, potentially increasing capacity without compromising resource fungibility.