The gas fee for transactions on the Ethereum network has decreased significantly in the early days of June after reaching a peak in May, due to the hype surrounding memecoin and the high level of activity from MEV bots.
The average gas fee has gone down to $7.34, representing a decrease of nearly one-third from the $20 peak of last month. On the gwei scale, which is a denomination of Ether (ETH) equivalent to one-billionth of one ETH, the median daily gas price has gone down to 24 gwei from the 140 gwei peak it reached last month, as reported by Dune Analytics.
The surge of memecoins in late April and May was so powerful that it caused a drastic alteration of the top 10 gas-consuming altcoins. Ethereum, Wrapped Ether, and Tether were replaced by memecoins like Troll, APED, and BOBO, which became the highest spenders.
The increasing demand for memecoins on decentralized platforms, combined with the delay in listing them on mainstream centralized exchanges, has been a major factor in the surge of Ethereum gas fees.
In May, the Ethereum memecoin craze was not the only thing to gain traction; the Bitcoin Ordinals also saw a surge in popularity. These Ordinals allow for digital art to be stored on the Bitcoin blockchain in a decentralized manner. As a result, the Bitcoin network experienced a large influx of memecoins, with Pepecoin (PEPE) even reaching a market cap of one billion dollars.
Bitcoin metrics have reached the moon: all-time highs for hash rate, daily transactions, and ordinals.
In January, Ordinals were launched, and by the end of May, the amount of Ordinal entries on the Bitcoin blockchain had exceeded 10 million. In May, the total fees paid for Ordinal inscriptions had risen by 700%, and now stand at 1,639 Bitcoin (BTC).
As the fervor surrounding memecoins has subsided, Ethereum gas fees have decreased and Ordinals inscriptions have also seen a dramatic drop.
Can we make Bitcoin better than Ethereum by using ordinals, rather than making it worse?
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