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Ethereum transaction fees have dropped to near one-year lows

Although Ethereum continues to have one of the highest transaction volumes in the crypto industry, the blockchain has recently seen a decrease in transaction fees. The fees have declined significantly, which is a great development for network customers. However, this drop has raised concerns about the potential impact on the price of digital asset.

Ethereum fees have dropped to a 10-month low

Ethereum transaction fees have just decreased. This is due to user migration away from the network and toward alternative smart contract networks. Nonetheless, it is still the market’s leading smart contract platform. Specifically, the drop in transaction fees has been worrying, since it is now the lowest in ten months. The last time Ethereum saw such low transaction volumes was in July 2021.

In recent months, the network has seen extraordinarily high transaction fees, which were caused by increasing network activity due to the emergence of decentralized financing (DeFi) and non-fungible assets (NFTs). 

In recent months, the network has seen extraordinarily high transaction fees, which were caused by increasing network activity due to the emergence of decentralized financing (DeFi) and non-fungible assets (NFTs). 

The average fee is $5.05(R78.60) at the time of writing, but it fell below $3(R46.69) on Sunday. It is the lowest level of transaction costs in over a year. Although the median fees have decreased dramatically, trading NFTs on OpenSea and performing coin swaps on decentralized exchanges still resulted in hefty transaction fees.

ETH on the rise

A decrease in transaction costs can affect a cryptocurrency like Ethereum in a variety of ways. Although the implications are never perfect, past data might serve to identify a general direction for the price coming forward.

One of these momentous moments occurred in July 2021, when ETH fees fell below $3(R46.68) . This was followed by a rise that increased the value of the digital asset from around $1,700(R26 458) to $4,000(R62 256) in the next two months.

Given this, it is possible that ETH is preparing for a rally. This is supported by the market’s recent rebound trend, which has put the digital asset back on track to reach $2,000(R31 128) once more. This is dependent on whether buyers can easily take control of the market and push Ethereum back above $2,000(R31 128).

At the time of writing, ETH is worth $1,904(29 634R). With a market worth of $230 billion(R3.6TN), it is up 7.14 % in the last 24 hours and remains the second-largest cryptocurrency.

Ethereum transaction fees have dropped to near one-year lows

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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