Ethereum Transaction Fees Reach Lowest Levels in December 2022

Discover the lowest average transaction fees on the Ethereum network since December 2022. Learn why this drop in fees could lead to increased utility and market cap levels. Stay up to date with the latest developments in the Ethereum ecosystem.

Posted 10 months ago in Ethereum

According to Santiment, an on-chain analytics firm, Ethereum's average transaction fees have dropped to their lowest levels since December 2022. The average Ethereum transaction fee is now at $1.15, marking a significant decrease. This decrease in fees could lead to increased utility and a potential rebound in market cap levels. Santiment highlights the historical significance of this drop in fees, suggesting that as ETH becomes more affordable to circulate, utility will begin to rise. The tweet by Santiment states, 'Ethereum network fees have dropped down to its lowest level of 2023, at just $1.15 per transaction. Historically, we see utility begin rising as $ETH becomes more affordable to circulate. Increased utility can then lead to recovering market cap levels.' It is worth noting that at the time of writing, Ethereum was trading near $1,594. If the utility arising from decreased fees impacts prices, ETH may attempt an upside move targeting the $1,692 and $1,804 levels next. This could potentially lead to a retest of the $2,000 mark last seen in July. Despite the drop in fees, Ethereum is gaining support just below its current level of $1,540. Accompanying the decrease in average fees, Ethereum network fees have also fallen to a nine-month low of $22.1 million in the week. Additionally, ETH experienced negative exchange flows of $130 million, indicating a reversal of its deflationary trend. Overall, the decrease in Ethereum's transaction fees presents an opportunity for increased utility and potential market cap recovery. The impact of these reduced fees on prices remains to be seen, but it is a positive development for Ethereum users and the ecosystem as a whole.

Last updated 9/23/2023, 3:33:17 PM

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