On September 23, 2023, Santiment, an on-chain analytics firm, shared an X (formerly Twitter) post. The firm wrote in the post that “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. The increased utility can then lead to recovering market cap levels.”
🤑 #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. https://t.co/MpOLfMYKUp pic.twitter.com/JI8ZLhmb4p
— Santiment (@santimentfeed) September 23, 2023
Ethereum Average Fees Levels Highlight
As Santiment noted, the fees on the Ethereum network fell during the last few days. Notably, the “average fees” indicator keeps track of the mean fees (in USD) that users attach to their transactions on the Ethereum blockchain. However, when there is less transfer activity on the blockchain network, the users have no incentive to pay high fees, thus the average remains low.
As per Santiment, the average fees had come down to just $1.15 per transaction, which is the lowest since December last year. This mark has made it the lowest point of this year so far.
Meanwhile, low fees are an aftermath of low activity, which may boost more utility on the blockchain network. A lower cost of movement shows that more users would be willing to shift around their coins. As the on-chain analytics firm explained, “Increased utility can then lead to recovering market cap levels.”
ETH Price Analysis
Since the beginning of this year, ETH price has traded above the $1,300 price mark. With the potential growth in the crypto industry prices, in mid-April 2023, ETH crossed the $2,000 price mark.
According to CoinMarketCap (CMC) data, at press time ETH is trading at a price of $1,591.93 with a 24-hour trading volume of $3.74 Billion. The second most-traded cryptocurrency by market cap is up 1.00% in the last 24 hours, with a current market cap of $191.39 Billion.
Additionally, Bitcoin (BTC), has not been particularly impressive. It has still shown more strength than Ethereum. Last week, a market intelligence platform, IntoTheBlock, also pointed out that the market cap ratio of the two assets rose to 2.86, a new yearly high.
Bitcoin dominance has rebounded in the past few weeks, approaching 50% for the second time this year.
Bitcoin’s strength is also evident in its relationship with $ETH. The ratio of Bitcoin’s market cap to Ether’s market cap reached a yearly high of 2.68x this week pic.twitter.com/RIGwy4IFjo— IntoTheBlock (@intotheblock) September 23, 2023
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/09/26/ethereum-network-fees-dropped-down-to-its-lowest-level-of-2023/