The overall costs users pay to submit a transaction or execute a smart contract on the Ethereum network have been declining weekly, according to on-chain analytics company IntoTheBlock.
IntoTheBlock tweets a graphic with the statistic that Ethereum’s (ETH) total fees are presently at $59 million, a weekly decline of 16.5%.
“Total Ethereum transaction costs decreased this week by 16.5%. The recent fee rise that was caused by May’s meme token fever appears to be passing into crypto history, according to IntoTheBlock.
Similar findings were found by on-chain analytics firm Santiment, which saw a decline in Ethereum’s typical costs. It claims that Ethereum transaction rates have returned to normal after peaking at $14 in early May 2023.
Meme token mania recedes
The frog-themed meme currency PEPE first gained attention in May. Within three weeks of its release, PEPE’s market valuation immediately topped the $500 million threshold, signalling the beginning of a new meme currency craze. Some recently released meme tokens also saw a flurry of activity on par with this.
The ETH network was impacted because PEPE is an ERC-20 token that runs on the Ethereum blockchain.
One of the primary causes of the rapid rise in Ethereum petrol costs to their highest level in more over a year was the expansion of the PEPE meme currency, which resulted in considerable trading activity. The average price of a single Ethereum transaction surpassed $15.82 on May 4.
Ethereum costs have now decreased by nearly 69% from their high, according to Santiment, as the meme token fever subsided. PEPE is now trading at $0.000001259. This is a 71% decline from its all-time high of $0.000004354 on May 5.
