Ethereum Transaction Fees Plummet to $1.12, Hitting Lowest Point Since October 18th
In a much-needed relief for Ethereum users, network transaction fees have dropped to a mere $1.12 per transaction. This marks the lowest average cost since October 18th, making it a significant development for users who have had to bear high fees during peak trading hours.
🤑 #Ethereum’s average fee level has dipped to just $1.12 per network transaction, the lowest average cost in a day since October 18th.
Traders historically move between sentimental cycles of feeling that #crypto is going “To the Moon” or feeling that “It Is Dead”, which can… pic.twitter.com/8b8rLMLyIf
— Santiment (@santimentfeed) April 28, 2024
Santiment Data Reveals Ethereum Fee Fluctuations Reflect Market Sentiment
According to Santiment, a trusted market intelligence platform monitoring over 2,500 cryptocurrencies, this notable decrease in Ethereum transaction fees is closely tied to market sentiment. Ethereum transaction fees have always been volatile, with apparent factors mirroring how traders perceive the asset’s price movements.
It’s important to note that trader sentiment in the cryptocurrency space fluctuates, corresponding to transaction fee levels. When prices rise and fees are at their highest, it’s referred to as “to the moon.” Conversely, when both factors hit their lowest, it’s termed “it is dead.” Therefore, market activity is most intense during peak and low fee periods.
Dip in Ethereum Fees Expected to Drive Network Engagement
The recent decline in Ethereum transaction fees aligns with the overall retracement in the cryptocurrency market over the past six weeks. This period witnessed a decrease in transaction demand, which relieved congestion on the Ethereum network and subsequently led to fee reductions.
Ultimately, the impact of lower transaction fees on Ethereum and the broader cryptocurrency space is manifold. Etherum becomes more accessible to the public, as the network becomes more affordable to use. Additionally, lower costs can spur network engagement by encouraging higher transaction volumes, particularly for smaller transactions.