Ethereum Transaction Fees Hit Record Low at $1.13
Data from on-chain analytics firm Santiment reveals that Ethereum has experienced a significant drop in transaction fees. The term “average fees” refers to the average amount of USD users attach to their Ethereum transfers. This value depends on the level of traffic the ETH network receives. When the network is congested, transactions may face delays as validators have limited processing capacity.
During periods of high activity, users often attach higher fees to prioritize their transactions. However, during times of low traffic, there is no incentive to attach significant fees, resulting in lower average fees.
Impact on Ethereum Price
A previous pattern suggests that when transaction fees reach record lows, it often coincides with the cryptocurrency hitting its bottom price. The recent plunge in fees could potentially help Ethereum discover its bottom and initiate a rebound.
Affordable network fees can increase the utility of Ethereum and encourage investors to engage in more activity, which may positively impact the price.
Current ETH Price
As of now, Ethereum is trading at approximately $1,600, experiencing a 1% decrease in the past week.
Hot Take: Will Ethereum Find Its Bottom?
The recent drop in transaction fees for Ethereum raises speculation about whether the cryptocurrency will hit its bottom soon or face further drawdown. The correlation between low fees and the bottoming out of price suggests a potential turnaround. However, only time will tell if this trend continues and if Ethereum experiences a rebound in the near future.
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