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

CoinRank News: According to Santiment, an on-chain analysis platform, transaction costs on the Ethereum network have fallen to their lowest level in five years as activity on the blockchain is at a low point. Brian Quinlivan, marketing director at Santiment, said that Ethereum network fees are currently around $0.168 per transaction, and as fees have fallen, the number of people sending ETH and interacting with smart contracts has also fallen. When a lot of people use Ethereum, users bid higher fees to get their transactions confirmed faster, which pushes up the average cost, and when the number of transactions decreases, users dont need to bid too high fees. Therefore, the average fee will fall. This is essentially a supply and demand system. Quinlivan analyzed that from a trading perspective, low fees may hinder price rebounds; however, traders seem to be patiently waiting for global economic uncertainty to pass before increasing the frequency of Ethereum and altcoin transactions. (Cointelegraph)