Ethereum fees drop to five-year low as transaction volume falls

Mars Finance News: According to the on-chain analysis platform Santiment, due to low blockchain activity, transaction costs on the Ethereum network have dropped to their lowest level in five years. Santiment's Marketing Director Brian Quinlivan stated that the current Ethereum network fee is approximately $0.168 per transaction. As fees decrease, the number of people sending ETH and interacting with smart contracts has also reduced. When many people use Ethereum, users bid higher fees to get their transactions confirmed faster, which drives up the average cost. When the number of transactions decreases, users do not need to bid such high fees. Therefore, the average fee will drop. This is essentially a supply and demand system. Quinlivan analyzed that from a transaction perspective, low fees might hinder price rebounds; however, traders seem to be patiently waiting for global economic uncertainty to pass before increasing the frequency of ETH and Altcoin trading. (Cointelegraph)