Ethereum gas fee sinks close to 70% in under a month

Ethereum gas fee tanked all the way down to under $5 in May.
BlackRock CEO Larry Fink reiterates dedollarisation as a real risk.
Ethereum is currently down more than 10% versus its YTD high.

Ethereum gas fee declined by close to 70% in just under a month, data from Santiment – an on-chain data provider confirmed on Thursday.

Ethereum gas fee is back under $5

Interestingly, that said fee was seen at a year-to-date high of $14 per transaction in early May. By the end of the month, though, it tanked all the way down to under $5. The Santiment report reads:

More affordability encourages more utility. Additionally, crypto’s number 2 asset is at an all-time low 9.9% on exchanges as selfcustody reigns.

Earlier this week, strategists at JPMorgan warned that Ethereum could see a sell-off in the coming months following its recent Shanghai upgrade that shifted the Ethereum network to a more energy efficient proof-of-stake.

ETH is currently down over 10% versus its year-to-date high.

Could Ethereum surge in coming months?

On the flip side, though, there are catalysts that could push Ethereum up moving forward as well. For one, BlackRock CEO Larry Fink this week reiterated dedollarisation as a real risk.

The United States is jeopardising its reserve currency status with U.S. debt ceiling drama. There will be pockets of problems, like the commercial real estate.

The recent banking crisis has also shaken confidence in the fiat currencies. That has also pushed many to crypto assets like Bitcoin and Ethereum which are seen as safer alternatives.

In 2022, BlackRock itself launched a spot Bitcoin private trust for U.S. clients and also partnered with the crypto exchange Coinbase.