• The Ethereum network has gone through a remarkable decline in gas fees, as memecoin frenzy and MEV bot activities have propelled it to unprecedented heights.
• In recent weeks, the Ethereum network has witnessed a captivating transformation with the dominance of memecoins replacing established tokens like ETH, WETH, and Tether in the top 10 gas-burning altcoins.
• Gas fees on the Ethereum network have experienced a notable decline during the first week of June due to Bitcoin Ordinals gaining traction on the network.
Ethereum’s Record Highs
The Ethereum network has undergone a remarkable drop in gas fees. Memecoin frenzy and Maximal Extractable Value (MEV) bot activities have propelled Ethereum to unprecedented heights. Established tokens such as Ether (ETH), Wrapped Ether (WETH), and Tether (USDT) have been replaced by memecoins like Aped (APED), Bobo Coin (BOBO), Troll (TROLL) in the top 10 gas-burning altcoins.
Drop in Gas Fees
Gas fees on the Ethereum network have experienced a notable decline during the first week of June. The average gas fee dropped to $7.34, marking a nearly one-third decrease compared to last month’s peak of $20. In terms of gwei, the daily median gas price decreased from almost 140 gwei to 24 gwei according to Dune Analytics.
In late April, numerous memecoins were introduced into the market including Aped (APED), Bobo Coin (BOBO). The influx of new memecoins caused a shift in the top 10 gas burning altcoins, replacing established tokens with memecoins instead.
Bitcoin Ordinals Gaining Traction
May was also an important period for Bitcoin Ordinals which provide decentralized storage of digital art on Bitcoin blockchain as they gained substantial traction with Pepecoin leading with its billion-dollar market capitalization surge .
The significant drop in transaction costs is welcomed by users who have been grappling with soaring transaction costs due to increasing demand for blockchain applications such as DeFi protocols and NFTs that drive up demand for transactions on Ethereum’s blockchain..