The average fees on the Ethereum network have fallen to $0.168, the lowest level in the past five years. This conclusion was reached by experts from the analytical platform Santiment. The decrease in fees indicates a reduction in user activity on this network, as the number of transactions declines, leading to lower processing costs.
This is reported by Бізнес • Медіа
Reasons for the Decrease in Fees and Implications for Users
According to analysts, this drop in average fees is related to a decrease in the number of users making transfers via Ethereum.
“When Ethereum is actively used, users are willing to pay higher fees for faster transaction processing. This raises the average cost of transfers. However, when activity declines, as it is now, there is no need to overpay — consequently, average fees fall. This is a classic example of the law of supply and demand.”
Therefore, this is currently a favorable moment for developers and users working with Ethereum-based applications, as they can significantly save on transaction costs.
Experts also noted that many market participants are waiting for the end of global economic instability before returning to more active use of Ethereum and other altcoins. From an economic standpoint, historically low fees precede price increases in cryptocurrencies, making purchases at such levels less risky. However, specialists warn that a fee level below $1 is a good sign, but it does not mean that the market has already reached its bottom or peak activity.