Ethereum’s transaction fees have plunged to their lowest level in half a decade, now averaging just $0.168, according to a recent analysis by crypto data firm Santiment.
The drop reflects a sharp decline in user activity across the network, with fewer wallet transfers and interactions with decentralized apps, such as DeFi platforms and NFT projects.
The Ethereum network, which adjusts fees based on user demand, has seen a significant slowdown in recent months. With less congestion, users are able to offer lower fees and still have their transactions confirmed in a timely manner.
Santiment explained that when network traffic is high, users often compete by paying more to get faster confirmations. In quieter periods like this, those incentives disappear, driving fees down across the board.
For developers and testers, this environment creates ideal conditions to experiment with new applications at minimal cost. However, it’s not all positive.
Ethereum’s market cap has dropped by 61% over the past four months, a steep decline that’s made investors more hesitant. Many are limiting their exposure to ETH and altcoins, opting to wait out the broader economic uncertainty before ramping up activity again.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/sharp-drop-in-ethereum-activity-pushes-fees-to-historic-lows/