Analysis: Ethereum gas fees drop to 5-year low, which may indicate that ETH price will bottom out in the medium term

Bitget Research Chief Analyst Ryan Lee recently stated: "Every time the Gas fee of ETH falls to the bottom, it often means that the price has reached a mid-term bottom. After this cycle, the ETH price often rebounds strongly, and when this moment happens to coincide with the interest rate cut cycle, the wealth effect of the market is full of possibilities."

Lee said that Ethereum's Gas fee has dropped to the lowest point in five years, which can be attributed to the popularity of Meme and the migration of DApp interactive users to other faster and cheaper blockchains such as Solana and Layer 2. In addition, the upgrade of Dencun has also improved network efficiency, thereby reducing Gas fees.

At the same time, due to the reduction in fees, the amount of ETH destroyed has decreased, which means that its supply has begun to increase. (CoinDesk)