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Ethereum's gas fees dropped to a five-year low, with fees dipping as low as 0.6 gwei earlier this week.
What’s the scoop?
- Compared to Earlier This Year: This marks a significant decrease from the 83.1 gwei levels seen in March — more than a 95% decline.
- Migration to Other Blockchains: Some analysts quoted by CoinDesk note that users moving to faster, cheaper blockchains like
Solana and L2s, along with Ethereum's Dencun upgrade, have reduced gas fees. - Need a New Decimals Place: The fees have gotten so low that block explorer Etherscan has added a new decimals place to its Gas Tracker to better capture the current gas prices, reflecting how rare and significant this drop is.
- Supply Impact: The lower gas fees have reduced the amount of ETH being burned, making ETH inflationary again. Over the past week, ~16K ETH were added to the total supply, putting it on track to grow by 0.7% this year.
Bankless Take:
While drops in 
Ethereum gas fees have historically been a bullish signal for ETH, the shifts in network dynamics — like migrations to L2s, Solana, and ETH going inflationary once again — definitely add additional factors to consider this time around.
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