Ethereum Gas Fees Hit Record Low: Vitalik Buterin Speaks Out
Ethereum is under growing pressure from both inside and outside its network, leading to new challenges for its ecosystem.
Average transaction fees have recently hit their lowest point in four years, signaling a significant decline in network activity. According to The Block, the median gas price, which typically averaged 1.61 GWEI, has dropped to 1.19 GWEI—the lowest since tracking began in 2020. This suggests reduced demand for transactions on the network.
While lower fees might seem like good news for everyday users, they actually point to declining demand rather than improved network efficiency.
Ethereum’s on-chain activity has also fallen to $4.19 billion, marking its lowest point since November of last year, just after the U.S. presidential elections. This downward trend indicates a drop in user interest, which could have long-term consequences for the network’s growth.
Related: Ethereum Foundation Is Now Earning from DeFi—But at What Risk?
Vitalik Buterin, the founder of Ethereum, expressed his disappointment over recent criticism aimed at the project. Responding on the Tako platform, he pointed out that negative remarks about Ethereum’s shift away from blockchain “casinos” and other controversial statements don’t represent the genuine sentiment of the community. According to Buterin, the community’s loyalty and unity are the key driving forces behind Ethereum’s growth, despite the current challenges.
He further explained that the criticism of his vision for Ethereum’s future reflects differing perspectives on the network’s role. The Ethereum founder stressed that to overcome the present challenges, Ethereum should focus on improving security protocols and optimizing infrastructure, rather than merely seeking short-term gains.
Buterin is confident that maintaining open communication between developers, investors, and users will help find balanced solutions to keep Ethereum competitive.
Meanwhile, external challenges are also impacting Ethereum. JPMorgan has cautioned that the crypto market is showing multiple bearish signals. Institutional demand for Bitcoin and Ethereum futures on CME has dropped significantly. Additionally, the total cryptocurrency market capitalization has decreased by 15% from its peak, reflecting declining interest from major investors and a lack of positive catalysts driving the market forward.
Related: Who Is Aya Miyaguchi: Wrong Leader for Ethereum Foundation?
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