Both Ethereum and Bitcoin have seen a boom in interest in meme-based cryptocurrencies in recent months. This triggered a flurry of activity and soaring gas prices. However, the first week of June brings some comfort because gas fees on the Ethereum network have significantly decreased.
Gas fees, which represent a free transaction on the Ethereum network, have fallen to an average of roughly $7. This represents an almost one-third reduction from the previous month’s high. Furthermore, gas prices on other networks have declined. This is critical since spending a large sum of money solely on transaction fees is undesirable to customers.
The meme coin mania started in late April and peaked in May. During that moment, a slew of new coins based on memes were released. PepeCoin (PEPE), Aped (APED), and others are among them. Because of their dominance in the network activity, these meme coins caused an unprecedented shift in the top ten gas-consuming tokens at the moment.
— Walletor (@walletorapp) June 5, 2023
The proliferation of meme-coins on DeFi networks has also led to the growth in Ethereum costs. This outpaced the ability of centralized exchanges to list them. The decrease in gas fees benefits users while also improving the general accessibility of the Ethereum network.
In addition to the Ethereum meme coin frenzy, Bitcoin Ordinals saw considerable growth in May. Ordinals enable the Bitcoin Blockchain to be used for the decentralized storing of digital art. Furthermore, several additional meme coins emerged on the Bitcoin network, with Pepecoin (PEPE) reaching a billion-dollar market valuation.
Overall, the reduction in Ethereum gas fees in June provides some comfort to consumers who were previously burdened by high transaction costs. It emphasizes the volatile nature of the crypto market, where trends and interests can move swiftly. As the crypto landscape evolves, it is critical for consumers to be educated and adapt to shifting events.