On Saturday, Ethereum's mainnet witnessed a significant drop in median gas prices, dipping below 3 gwei. This marks a striking contrast from just a year ago when median gas prices ranged from 15 to 20 gwei, highlighting a substantial decrease in transaction costs facilitated by Ethereum's Layer 2 networks. This decline suggests that Layer 2 solutions are effectively alleviating the burden of high transaction fees on Ethereum, the world's second-largest blockchain by market capitalization.

The peak in gas prices for 2024 occurred in March, with median prices soaring to 83 gwei on March 5, as reported by @hildobby's Dune Analytics dashboard. However, the implementation of the Dencun upgrade on March 13, introducing "blobs" to Ethereum's infrastructure, has played a crucial role in reducing transaction costs across Layer 2 networks. This upgrade has contributed to a steady decline in median gas prices since its rollout, benefiting Ethereum users and applications alike.

The current low gas prices have resulted in Ethereum's burn rate hitting a 12-month low, according to data from The Block. Despite this, Ethereum remains marginally inflationary with a seven-day average supply growth of 0.56% per year, as reported by ultrasound.money. This reflects Ethereum's ongoing balance between transaction cost reduction and supply dynamics amid evolving network upgrades and optimizations.

Bitcoin Miner Revenue Hits Record Lows Post-Halving

Following Bitcoin's block reward halving event on April 20, Bitcoin miners have faced unprecedented challenges with record-low revenue per terahash per second (TH/s) in recent months. The Block's data dashboard indicates a stark decline in mining profitability since the halving, underscoring the economic pressures on miners despite the cryptocurrency's overall market position.

One potential contributing factor to the low profitability among Bitcoin miners is the subdued growth in new wallet adoption within the Bitcoin ecosystem. The seven-day average of new Bitcoin wallets has dwindled to its lowest level since 2018, signaling a broader trend of stagnant user acquisition in the cryptocurrency space.

Despite these challenges, some mining companies like CleanSpark have demonstrated resilience, outperforming Bitcoin's price performance year-to-date. Similarly, companies such as Bitfarms and Core Scientific have also shown positive trends relative to Bitcoin's price, according to data from The Block. However, smaller mining firms continue to face difficulties amid the current market conditions and competitive landscape.

Trump's Meeting with Bitcoin Mining Industry Fuels Speculation

Former U.S. President Donald Trump recently met with representatives from the Bitcoin mining industry in the United States, expressing support for miners in the context of the upcoming Presidential election scheduled for November. Trump's engagement with the industry has sparked discussions about potential implications for Bitcoin mining policies and regulations should he win reelection, adding a political dimension to the evolving landscape of cryptocurrency mining in the United States.

These developments underscore the intersection of technology, economics, and geopolitics shaping the future trajectory of both Ethereum and Bitcoin ecosystems amid evolving regulatory frameworks and market dynamics.