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The Decline of the Memecoin Craze Is Good News For Ethereum Gas Fees

The memecoin obsession has experienced a sharp downturn since reaching its zenith in May. Throughout the Ethereum network, the standard transaction cost, also known as the “gas fee,” has significantly subsided in the initial week of June. This drop comes after attaining a multi-month apex in May, driven mainly by the memecoin frenzy and the maximal extractable value (MEV) bot activities.

The Memecoin Storm: A Retrospective

The average gas fee dipped to an impressive $7.34, marking an approximately one-third decrease from last month’s lofty peak of $20. When considering the measurement in gwei — an Ethereum subunit representing one-billionth of an ETH — the daily median gas price dropped to 24 gwei from an all-time high of nearly 140 gwei the previous month, as per Dune Analytics data.

The memecoin madness erupted towards the end of April, stealing the spotlight in May. This craze incited a flood of novel memecoins entering the marketplace, including Aped (APED), Bobo Coin (BOBO), and others. The overwhelming prevalence of memecoins reshaped the landscape of network activity, triggering an unconventional shift in the top 10 gas-consuming altcoins.

Newcomers like Troll (TROLL), APED, and BOBO climbed the ranks to become the leading gas spenders.

Rising Popularity of Memecoins on Decentralized Platforms

Another factor propelling Ethereum’s gas fees was the surging acceptance of memecoins on decentralized platforms, while mainstream centralized exchanges trailed in listing them.

Yet May was not solely characterized by the Ethereum memecoin wave; Bitcoin Ordinals also earned considerable attention. These Ordinals, which facilitate the decentralized storage of digital art on the Bitcoin blockchain, prompted the introduction of numerous new memecoins on the Bitcoin network. 

Pepecoin (PEPE) emerged victorious, reaching a billion-dollar market capitalization.

The Advent and Impact of Bitcoin Ordinals

After their introduction in January, the count of Ordinal inscriptions on the Bitcoin blockchain had eclipsed 10 million by the end of May. In tandem, total fees for Ordinals inscriptions surged a staggering 700% in May, totaling an astonishing 1,639 Bitcoin.

However, as the memecoin madness subsides, Ethereum gas fees demonstrate a cooling effect. Similarly, Ordinal inscriptions have taken a downward turn. The decline of this trend highlights the volatile nature of such frenzies and their significant role in shaping the crypto economy. 

The post The Decline of the Memecoin Craze Is Good News For Ethereum Gas Fees appeared first on CryptoMode.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

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