In addition to Ethereum, the popularity of Bitcoin memes via Ordinals has drastically decreased since its peak in May.
When compared to the peak of the previous month, the Ethereum network’s average gas charge, or transaction fee, has significantly dropped in the first week of June. Since May, the gas tax has decreased to $7.34, or about one-third of its peak of $20. According to Dune Analytics, the median gas price has also dropped from nearly 140 gwei to 24 gwei.
The memecoin craze and the actions of maximal extractable value (MEV) bots were the main causes of the surge in gas prices in May. The rise of memecoins like Aped (APED) and Bobo Coin (BOBO) changed the top 10 gas-guzzler altcoins and made memecoins more prevalent in network activity.
Related: The Pepe memecoin frenzy has attracted attention from scammers.
The increase in Ethereum gas fees was influenced by the popularity of memecoins on decentralized platforms and the time it took for them to be listed on widely used centralized exchanges. Memecoin’s rising popularity and the associated transactions put strain on the Ethereum network, raising transaction costs.
The significant decrease in gas costs on the Ethereum network is a positive development for users and ecosystem players. Less expensive transaction costs can encourage more people to use decentralized applications and engage in other activities on the Ethereum network.
Bitcoin Ordinals
Along with the memecoin craze, Bitcoin Ordinals saw a substantial increase in popularity in May. On the Bitcoin blockchain, ordinals allow for the decentralized storage of digital art. The Bitcoin network saw the birth of new memecoins as a result of this trend, with Pepecoin (PEPE) reaching a market valuation of $1 billion.
The erratic character of cryptocurrency markets and the impact of different events on network congestion and transaction prices are highlighted by the variations in gas fees. Users should be updated about gas prices and make plans for their transactions as the ecosystem changes and new patterns arise.
The reduction in gas prices might offer a short-term reprieve, but it’s crucial to keep an eye on the network because future fees may be affected by market dynamics and activity levels. To ensure a more effective and accessible network for users, Ethereum developers and researchers are constantly looking for ways to increase scalability and lower transaction costs.
Related: Bitcoin Ordinals to bridge Ethereum NFTs with the launch of BRC-721E