In recent times, the Ethereum network has been grappling with high gas prices due to the surge in Memecoins and the activities of MEV Bots. However, a significant shift has occurred, leading to a notable drop in gas prices. On June 3, the average gas price plummeted to 24gwei, reaching the lowest point in the past two months. As of now, the real-time gas price stands at 17gwei, signifying a much-needed respite for Ethereum users and developers.
The Impact of Memecoins and MEV Bots on Ethereum Gas Prices:
Over the past few months, the cryptocurrency market witnessed an explosion in the popularity of Memecoins, which are digital currencies based on memes or internet culture. The sudden surge in Memecoins, fueled by the hype and social media frenzy, led to increased demand for transactions on the Ethereum network. Consequently, the network experienced significant congestion, resulting in skyrocketing gas prices.
Additionally, the rise of MEV (Miner Extractable Value) Bots further exacerbated the congestion issue. These automated bots are designed to exploit the transaction ordering and sequencing process within the Ethereum network, aiming to maximize profits. By prioritizing their transactions and manipulating the order in which they are included in blocks, MEV Bots added an extra layer of complexity to the already strained network.
The Gas Price Plunge:
Despite the sustained high gas prices, the recent crash in the Memecoins market As the hype around Memecoins wanes, so does the demand for Ethereum transactions related to these assets. Consequently, the Ethereum network has experienced a significant drop in gas prices, providing much-needed relief to users.
On June 3, the average gas price plummeted to 24gwei, marking the lowest point in the past two months. This substantial reduction in gas prices has been a welcome development for users who were previously burdened by exorbitant fees. Currently, the real-time gas price stands at 17gwei, signaling a more cost-effective environment for Ethereum transactions.