Gas Fee Collapse

Definition ∞ A gas fee collapse refers to a substantial and rapid reduction in the transaction costs on a blockchain network, particularly on Ethereum. This phenomenon typically occurs during periods of low network congestion or after significant protocol upgrades that improve efficiency. Lower gas fees make network interactions more accessible and affordable for users.
Context ∞ Crypto news often highlights gas fee collapses as a positive development for network usability and adoption, especially for decentralized applications. These events can signal a decrease in network demand or the successful implementation of scaling solutions like Layer 2 rollups. Observing gas fee trends provides important insight into network activity and operational efficiency.