Ethereum fees fall to 5-year low as trading volumes slow

Fees on the Ethereum blockchain have fallen to their lowest level since 2020. On the 17th (local time), on-chain analytics platform Santiment
Ethereum (ETH) fees have fallen to a five-year low as users are sending ETH and using smart contracts less frequently, according to data from Antiment.
Transaction fees on the Ethereum network are currently around $0.168 per transaction, the lowest they have been in the past five years.
Director Brian Quinlivan said the decline in fees was "concurrent with users sending Ethereum and using smart contracts less frequently."
"As more people use Ethereum, they will offer higher fees to ensure that transactions are confirmed quickly, which will drive up the average fees," he said in a blog post.
"When people are making smaller transactions, like they are now, they don't have to offer as much, so the average fee goes down," he explained. The system essentially works on the law of supply and demand.
He added, "Low fees could hinder a price rebound, but traders are still waiting for global economic uncertainty to be resolved before increasing trading frequency."
"We can see increased sensitivity to euro zone-related debates and taxes, as well as economic news," he said, "threatening the support levels that prices have long held."
He added: "The more retail investors actively avoid trading, the more likely it is that a big rally will occur without any unexpected resistance, especially in assets that are still in active development."
Ta.