Ethereum (ETH) blockchain network fees are at a 2-year low following the drop in Ethereum’s price down from its all-time high, according to data released by blockchain analysis firm Santiment.
ETH transaction fees (Source:Santiment)
As things stand, ETH fees are down to an average of $0.88 per transaction. The last time that ETH fees were below the $0.90 threshold was back in July 2020. The drop in ETH’s fees can mainly be attributed to the 70% drop in ETH’s price from its all-time high, which has also had a negative impact on the utility of the ETH blockchain.
As the transaction fees of ETH take a drop, so too does its price as it has experienced a 2.86% drop over the past 24 hours – taking its price down to around $1,185.87 at the time of writing. Despite the 24-hour dip, ETH’s price is still standing strong on the weekly horizon and is up 11.73% over the last 7 days. As a result, ETH’s total market cap stands at $144.03 billion.
Transaction fees dropping could be a good sign for the second largest crypto by market cap and the largest altcoin by market cap, because it will attract more activity as the crypto market comes out of its current bearish state.
The timing could not be more perfect as The Merge also approaches which will see transaction fees drop even more as the ETH blockchain becomes more scalable – resulting in less congestion.
Although The Merge has been delayed countless times, it will be a significant event in ETH’s history and may even attract the investor interest needed to flip BTC as the largest crypto by market cap.