Ethereum Fees At Lowest Since Nov. 2022, Bottom Signal. Data indicates that the cryptocurrency’s price touched its bottom the last time Ethereum transaction fees fell to such low levels.
Ethereum Average Transaction Fees Have Dropped To Just $1.13 Now.
Data from the on-chain monitoring company Sentiment shows that this week’s costs for cryptocurrency have been meagre. In this context, the term “average fees” refers to a measure assessing the typical fees users charge for sending Ethereum, expressed in US dollars. The amount of traffic the ETH network experiences often affects this indicator’s value. Some transactions could get stuck waiting for a while whenever the mempool is overloaded with transfers because the validators can only handle so many transfers simultaneously.
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Those who want their transactions processed as quickly as possible might prioritize them on the network by charging more significant than usual costs. As a result, average prices may increase during high activity as users compete to process transactions first. However, as this incentive only occurs during periods of low traffic, average fees may decrease as senders lose the motivation to transmit large sums of money along with their transactions.
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The indicator’s value can indicate how heavily used the blockchain is due to the correlation between the fees and network activity. Here is a graph showing the average Ethereum fee trend over the previous 12 months. As shown in the graph above, the average Ethereum costs have been falling over the past several months and have just touched pretty low levels. This indicates that network activity has been slowing down. The indicator’s value has dropped to $1.13 following the most recent decline, which is the lowest since November 2022. Interestingly, the currency had just experienced the FTX crash at the time, and the price had fallen to its lowest point while the fees were at their lowest point. The current decline in transaction costs may also aid in the cryptocurrency finding its bottom if the past trend is any indication.
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Sentiment points out that a more affordable network can typically result in the increased utility of the digital asset, which is why low fees can open the door for a bottom. This new activity, which could develop as investors feel motivated to act, can occasionally assist in the price showing a rebound. It is unclear whether the price of Ethereum will reach its low point in the upcoming days or if the coin will experience further decline.