Ethereum Gas Fees Sees a Drop Since the Meme Coin Frenzy in May 2023

The meme coins have had an interesting month in May 2023, starting from Bitcoin Ordinals to the Pepe coin, which saw a massive rise in its value since its inception and has since died down on the speed. Prior to the meme frenzy in May, the Ethereum Shanghai Capella upgrade had been making the headlines for so many reasons, one of the main reasons for the same being the rise in its gas fees due to the rise in ETH withdrawals.

The transaction fee or average gas fees on the Ethereum network has dialed down substantially during the first week of June after it reached a multi month high back in May. The memecoin frenzy that took place recently had been the main reason for the dip, along with the much maximal extractable value, also referred to as MEV, bot activities.

Source: Dune Analytics

The average gas fee of ETH have seen a decline to $7.34, which is almost a one-third drop from last month’s high, which stood at $20. However, as per Dune Analytics, in terms of gwei; which is a denomination of Ether, representing about one-billionth of one ETH; the daily median gas price has gone down to 24 gwei from a height of about 140 gwei last month.

Read More: Ethereum Price Prediction

The effect of the meme coin frenzy was so unusually dominant that the top 10 gas burning altcoins saw a shift; instead of tokens like ETH, Wrapped Ether (WETH), or Tether, the tokens that dominated the charts were Troll (TROLL), APED and BOBO. These meme coins became the top 10 gas fee spenders.

⛽️ A highly unusual shift in top 10 gas burning #altcoins has emerged today. Instead of $ETH, $WETH, and $USDT being at the top of the fee distribution list, we’re seeing new assets like $TROLL, $APED, and $BOBO among them. Read our latest deep dive. 👇 https://t.co/7SlmJ59k2m pic.twitter.com/Y2kaLKZTrL

— Santiment (@santimentfeed) April 19, 2023

Even though May was filled with events revolving around meme coins and Ethereum, the introduction of Bitcoin Ordinals also gained some prominent popularity. Launched in January 2023, Ordinals made it possible for the decentralized storage of digital art on the BTC blockchain. As a result of which, the Bitcoin network registered new meme coins, along with PEPE achieving a billion-dollar market capitalization quickly after its launch.

But, as the memecoin frenzy is going down, there is a change in the rise in Ethereum gas fees as well, and the Ordinals’ inscriptions have also started to decrease significantly.

Additional Read: Top Memecoins 2023

Source: Cointelegraph