Kaiko Report: New Low in Ethereum Gas Fees Will Impact Price and Inflation
On August 19, industry research company Kaiko reported that Ethereum's Gas fees have recently fallen to their lowest level in five years. According to Etherscan's Gas Tracker, the average network fee for Ethereum Layer 1 is currently 2.15 Gwei or just $0.13, the lowest level since 2019. The Kaiko report suggests that the reduction in fees could impact the issuance and consumption of gas on Ethereum. If supply no longer shrinks, this could also affect prices. Meanwhile, ETH's total supply has increased since April due to lower network fees and a reduced base fee burn rate following the launch of EIP-1559. According to data from ultrasound.money, ETH supply has increased by about 0.2% since early April, from approximately 12 million to around 12 million and twenty-eight thousand six hundred (12028.6). This means an additional 223,000 ETH were added over the past four months which at current spot prices are worth approximately $591 million USD . The report states that on a weekly basis, ETH supply increases by about 0.71% annually which at current rates equates to an increase of roughly16 ,500 ETH per week.
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