The transaction costs on Bitcoin and Ether networks have plunged to their most minimal levels in several months, as the crypto market weathers a period of extreme turbulence in 2024. On June 23, the average Bitcoin transaction fee dropped to $1.93 per transaction, a nadir since October of the preceding year. This reduction in Bitcoin's gas fee indicates decreased network activity and less competition.

Usually, heightened market volatility - particularly when prices spike - triggers a surge in transaction fees on the Bitcoin network as competition for block space intensifies due to increased price speculation. However, every significant bullish phase since 2012 saw a corresponding hike in fees, except for the bull run in 2021 when Bitcoin's price peaked at $69,000 with transaction fees remaining relatively stable.

Simultaneously, Ether (ETH) gas fees have dropped to historical lows with gas prices
touching 1 gwei, an unprecedented low in recent years. As it stands, the current gas fee on the Ethereum network is roughly 4.5 gwei. The Ethereum network uses gwei, a denomination of Ether, to facilitate the purchase and selling of goods and services, where one gwei equates to one-billionth of one ETH.

The significant drop in Ethereum gas fees is attributed to activity migrating from Ethereum's base layer to its secondary layer following the Dencun upgrade in March. Since this upgrade, Ethereum's mean gas prices have been slashed by about 92%. The layer 2 networks accumulated $950,000 last week, according to a report from Layer2 Insider.

These transaction fee reductions on the foremost cryptocurrency networks occur amidst one of the most challenging weeks for the crypto market in 2024. This period saw Bitcoin price tumble below the $63,000 support level, and numerous alternative cryptocurrencies suffer double-digit declines.

Notably, in the last six months, the crypto market has seen a significant rise. A few dominant cryptocurrencies such as Bitcoin and certain altcoins achieved record highs.