Jun 05, 2023
Meme Coin Frenzy Cools, Ethereum Gas Fee Plummets to $7.34
The Ethereum network’s average transaction fee, or gas fee, has cooled substantially in the first week of June after reaching a multi-month high in May. According to data from Dune Analytics, the median daily gas price has decreased to 24 gwei from its peak of almost 140 gwei last month.
The surge in gas fees was largely attributed to the meme coin frenzy that took center stage in May. A number of new memecoins such as Aped, Bobo, and others hit the markets, leading to an unusual shift in the top 10 gas-burning altcoins. Instead of ETH, WETH, or USDT, memecoins such as TROLL, APED, and BOBO became the top 10 spenders.
The popularity of these meme coins on decentralized platforms also contributed to the rise in Ethereum gas fee, as mainstream centralized exchanges took some time to list them.
May was also the month when Bitcoin’s latest layer-2 solution, Ordinals, gained significant traction. Ordinals enable decentralized storage of digital art on the Bitcoin blockchain, resulting in the emergence of many new meme coins with Pepe coin gaining a billion-dollar market cap.
The total fee paid for Ordinals inscription rose by 700% in May and currently sits at 1,639 BTC. However, with the meme coin frenzy cooling down, the Ethereum gas fee has cooled while the number of inscriptions on Ordinals has also come down significantly.
The recent drop in Ethereum gas fees has been welcomed by the web3 space as it makes it more affordable to interact with decentralized applications. NFTs, which have become increasingly popular in recent times, have also benefited from the lower gas fees. NFTs are digital assets stored on a blockchain, and require users to pay a gas fee to interact with them. Lower gas fees make it more feasible for users to buy, sell, and trade NFTs.
NFTs have been gaining traction in the crypto space, and many businesses are now leveraging them to promote their products and services. NFTs can be used to create unique promotional campaigns, and many businesses are now turning to NFT marketing agencies to help them create and execute these campaigns. NFT marketing agencies can help businesses create NFTs, promote them on social media platforms such as Twitter, and even help them sell them.
The recent drop in Ethereum gas fees has made it more affordable for businesses to use NFTs for marketing and promotional purposes, and is likely to further boost the popularity of NFTs in the web3 space.
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