diff --git a/src/update-feeds/update-feeds.test.ts b/src/update-feeds/update-feeds.test.ts
index 1b203589..0ec01816 100644
--- a/src/update-feeds/update-feeds.test.ts
+++ b/src/update-feeds/update-feeds.test.ts
@@ -10,11 +10,11 @@ import * as stateModule from '../state';
 import * as utilsModule from '../utils';
 
 import * as dapiDataRegistryModule from './dapi-data-registry';
-import { runUpdateFeed, startUpdateFeedLoops } from './update-feeds';
+import * as updateFeedsModule from './update-feeds';
 
 jest.mock('../state');
 
-describe(startUpdateFeedLoops.name, () => {
+describe(updateFeedsModule.startUpdateFeedLoops.name, () => {
   it('starts staggered update loops for a chain', async () => {
     jest.spyOn(stateModule, 'getState').mockReturnValue(
       allowPartial<stateModule.State>({
@@ -37,7 +37,7 @@ describe(startUpdateFeedLoops.name, () => {
     }) as any);
     jest.spyOn(logger, 'debug');
 
-    await startUpdateFeedLoops();
+    await updateFeedsModule.startUpdateFeedLoops();
 
     // Expect the intervals to be called with the correct stagger time.
     expect(setInterval).toHaveBeenCalledTimes(2);
@@ -87,7 +87,7 @@ describe(startUpdateFeedLoops.name, () => {
     }) as any);
     jest.spyOn(logger, 'debug');
 
-    await startUpdateFeedLoops();
+    await updateFeedsModule.startUpdateFeedLoops();
 
     // Expect the intervals to be called with the correct stagger time.
     expect(setInterval).toHaveBeenCalledTimes(2);
@@ -116,7 +116,7 @@ describe(startUpdateFeedLoops.name, () => {
   });
 });
 
-describe(runUpdateFeed.name, () => {
+describe(updateFeedsModule.runUpdateFeed.name, () => {
   it('aborts when fetching first dAPIs batch fails', async () => {
     const dapiDataRegistry = generateMockDapiDataRegistry();
     jest
@@ -125,7 +125,7 @@ describe(runUpdateFeed.name, () => {
     dapiDataRegistry.callStatic.tryMulticall.mockRejectedValueOnce(new Error('provider-error'));
     jest.spyOn(logger, 'error');
 
-    await runUpdateFeed(
+    await updateFeedsModule.runUpdateFeed(
       'provider-name',
       allowPartial<Chain>({
         dataFeedBatchSize: 2,
@@ -185,8 +185,11 @@ describe(runUpdateFeed.name, () => {
         },
       })
     );
+    jest
+      .spyOn(updateFeedsModule, 'getFeedsToUpdate')
+      .mockImplementation((feeds) => feeds.map((feed) => ({ ...feed, shouldUpdate: true })));
 
-    await runUpdateFeed(
+    await updateFeedsModule.runUpdateFeed(
       'provider-name',
       allowPartial<Chain>({
         dataFeedBatchSize: 1,
diff --git a/src/update-feeds/update-feeds.ts b/src/update-feeds/update-feeds.ts
index 9af89f3a..3e00e9c3 100644
--- a/src/update-feeds/update-feeds.ts
+++ b/src/update-feeds/update-feeds.ts
@@ -4,6 +4,7 @@ import { range, size } from 'lodash';
 
 import { checkUpdateConditions } from '../condition-check';
 import type { Chain } from '../config/schema';
+import { clearSponsorLastUpdateTimestampMs } from '../gas-price/gas-price';
 import { logger } from '../logger';
 import { getStoreDataPoint } from '../signed-data-store';
 import { getState, updateState } from '../state';
@@ -17,6 +18,7 @@ import {
   verifyMulticallResponse,
   type ReadDapiWithIndexResponse,
 } from './dapi-data-registry';
+import { deriveSponsorWallet } from './update-transactions';
 
 export const startUpdateFeedLoops = async () => {
   const state = getState();
@@ -127,35 +129,30 @@ export const runUpdateFeed = async (providerName: Provider, chain: Chain, chainI
 };
 
 export const getFeedsToUpdate = (batch: ReadDapiWithIndexResponse[]) =>
-  batch
-    .map((dapiResponse: ReadDapiWithIndexResponse) => {
-      const signedData = getStoreDataPoint(dapiResponse.decodedDataFeed.dataFeedId);
-
-      return {
-        ...dapiResponse,
-        signedData,
-      };
-    })
-    .filter(({ signedData, updateParameters, dataFeedValue }) => {
-      if (!signedData) {
-        return false;
-      }
-
-      const offChainValue = ethers.BigNumber.from(signedData.encodedValue);
-      const offChainTimestamp = Number.parseInt(signedData?.timestamp ?? '0', 10);
-      const deviationThreshold = updateParameters.deviationThresholdInPercentage;
+  batch.map((dapiResponse: ReadDapiWithIndexResponse) => {
+    const signedData = getStoreDataPoint(dapiResponse.decodedDataFeed.dataFeedId);
+    if (!signedData) {
+      return { ...dapiResponse, shouldUpdate: false };
+    }
 
-      // TODO clear last update timestamps if an update is not needed
+    const offChainValue = ethers.BigNumber.from(signedData.encodedValue);
+    const offChainTimestamp = Number.parseInt(signedData?.timestamp ?? '0', 10);
+    const deviationThreshold = dapiResponse.updateParameters.deviationThresholdInPercentage;
+    const shouldUpdate = checkUpdateConditions(
+      dapiResponse.dataFeedValue.value,
+      dapiResponse.dataFeedValue.timestamp,
+      offChainValue,
+      offChainTimestamp,
+      dapiResponse.updateParameters.heartbeatInterval,
+      deviationThreshold
+    );
 
-      return checkUpdateConditions(
-        dataFeedValue.value,
-        dataFeedValue.timestamp,
-        offChainValue,
-        offChainTimestamp,
-        updateParameters.heartbeatInterval,
-        deviationThreshold
-      );
-    });
+    return {
+      ...dapiResponse,
+      signedData,
+      shouldUpdate,
+    };
+  });
 
 export const updateFeeds = async (_batch: ReturnType<typeof getFeedsToUpdate>, _chainId: string) => {
   // TODO implement
@@ -164,6 +161,9 @@ export const updateFeeds = async (_batch: ReturnType<typeof getFeedsToUpdate>, _
 
 export const processBatch = async (batch: ReadDapiWithIndexResponse[], providerName: Provider, chainId: string) => {
   logger.debug('Processing batch of active dAPIs', { batch });
+  const {
+    config: { sponsorWalletMnemonic },
+  } = getState();
 
   updateState((draft) => {
     for (const dapi of batch) {
@@ -186,5 +186,19 @@ export const processBatch = async (batch: ReadDapiWithIndexResponse[], providerN
     }
   });
 
-  return updateFeeds(getFeedsToUpdate(batch), chainId);
+  const feeds = getFeedsToUpdate(batch);
+
+  // Clear last update timestamps for feeds that don't need an update
+  for (const feed of feeds.filter((feed) => !feed.shouldUpdate)) {
+    clearSponsorLastUpdateTimestampMs(
+      chainId,
+      providerName,
+      deriveSponsorWallet(sponsorWalletMnemonic, feed.dapiName).address
+    );
+  }
+
+  return updateFeeds(
+    feeds.filter((feed) => feed.shouldUpdate),
+    chainId
+  );
 };
diff --git a/test/e2e/update-feeds.feature.ts b/test/e2e/update-feeds.feature.ts
index 3c2be649..c1988ebb 100644
--- a/test/e2e/update-feeds.feature.ts
+++ b/test/e2e/update-feeds.feature.ts
@@ -1,6 +1,7 @@
 import { ethers } from 'ethers';
 import { omit } from 'lodash';
 
+import { initializeGasStore } from '../../src/gas-price/gas-price';
 import { logger } from '../../src/logger';
 import * as stateModule from '../../src/state';
 import { runUpdateFeed } from '../../src/update-feeds';
@@ -30,6 +31,7 @@ it('reads blockchain data', async () => {
 
 it('updates blockchain data', async () => {
   const {
+    config,
     api3ServerV1,
     dapiDataRegistry,
     krakenBtcBeacon,
@@ -39,6 +41,8 @@ it('updates blockchain data', async () => {
     airseekerSponsorWallet,
     walletFunder,
   } = await deployAndUpdate();
+  init({ config });
+  initializeGasStore(chainId, providerName);
   const btcDapi = await dapiDataRegistry.readDapiWithIndex(0);
 
   const decodedDataFeed = decodeDataFeed(btcDapi.dataFeed);
diff --git a/test/fixtures/mock-contract.ts b/test/fixtures/mock-contract.ts
index b54f90c8..84fbb3f9 100644
--- a/test/fixtures/mock-contract.ts
+++ b/test/fixtures/mock-contract.ts
@@ -5,7 +5,7 @@ import type { DapiDataRegistry } from '../../typechain-types';
 import { type DeepPartial, encodeBeaconFeed } from '../utils';
 
 export const generateReadDapiWithIndexResponse = () => ({
-  dapiName: 'MOCK_FEED',
+  dapiName: ethers.utils.formatBytes32String('MOCK_FEED'),
   updateParameters: {
     deviationThresholdInPercentage: ethers.BigNumber.from(0.5 * 1e8),
     deviationReference: ethers.BigNumber.from(0.5 * 1e8),