The average daily gas fee of the Ethereum blockchain, i.e. the flexible fee charged to execute a transaction or execute a smart contract, has reached a two-month low after hitting highs in the memecoin trading spree last month.
Ethereum Fees Head To Two-Month Low After May's Memecoin Craze
The average transaction fee on Ethereum has dropped from a high of over $20 last month to $7.34 using the seven-day moving average. The last time wages were this low was on April 17, when they reached $6.57.
The situation remains the same when measured in gwei, an Ether value equivalent to one billionth of a coin. Data from Dune Analytics user Hildobby shows that the average daily gas price has dropped from over 140 gwei last month to 24 gwei. Prices were at the same level last April 12.
Memecoin trading, which caused gas prices to soar in May, pushed the DEX to CEX ratio above its all-time high of 20%. This rate has since fallen below 15%.
As centralized exchanges have traditionally been a bit slow to list memecoins, investors flocked to decentralized exchanges like Uniswap to buy and sell Pepe and others.
The demand for blockchain space for decentralized exchanges for Memecoins was primarily responsible for the increase in Ethereum transaction fees.
At the time of this writing, Ethereum price was trading at $1,870.
*Not investment advice.