Ethereum gas fees drop to an all-time low amid declining whale activity

ethereum gas prices and whale activity have declined as its price fell below the $2,600 mark.

According to a CryptoQuant post on x, the average daily gas price on the ethereum (eth) network fell to an all-time low of 2.9 Gwei, worth around $0.026, on Aug. 18. The average eth gas price registered a slight increase and currently stands at 3 Gwei.

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Data shows that only 115 eth, worth around $300,000, was burned as gas prices hit an all-time high. The eth price consolidated around the $2,600 mark amid market-wide uncertainty.

One of the main reasons behind the sharp drop in ethereum gas price is the Dencun upgrade, which was launched in March this year. Dencun allowed layer-2 networks to run their data blocks on the ethereum mainnet, leading to a significant drop in fees.

However, the CryptoQuant analyst claims that decreasing network fees could cause long-term problems such as “user and liquidity fragmentation.”

The analyst noted that eth supply has increased by 197,000 tokens while the price plummeted by 35% despite the approval of the long-awaited eth spot exchange-traded funds in the US.

Whale activity on ethereum has also been declining along with their fees. According to data from Santiment, the number of whale transactions consisting of at least $100,000 worth of eth has steadily declined over the past week, dropping from 5,371 on August 12 to 2,138 unique transactions at the time of the report’s publication.

eth is down 3% over the past 24 hours and is trading at $2,580 at the time of writing. However, its daily trading volume is up 32% and it has surpassed the $10 billion mark.