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siddhant
@siddhant98
Why Did Ethereum Fees Drop? 📉 Ethereum gas fees didn’t just randomly drop—major changes drove this shift: 💡Layer 2 Expansion & Proto-Danksharding (EIP-4844): The Dencun upgrade (Q1 2024) introduced blobs for cheaper data availability, massively cutting costs for L2 rollups. Transactions moved off mainnet, reducing base fees. 💡Network Activity Shift: DeFi usage declined, while wallet-to-wallet and token-token transfers increased. Less complex transactions = lower gas demand. 💡MEV Declined: MEV-related transactions dropped 33.9% in Q4, further slashing validator rewards from priority fees. Ethereum has never been this cheap to use—but cheap transactions come at a cost for stakers.
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