Coinciding with lower on-chain activity, the average transaction cost on the Ethereum network dropped to $1.15, an all-time low.
The annual low in Ethereum’s average transaction cost coincides with a general slowing of on-chain activity. It’s worth noting that this decline coincides with the resumption of ETH inflationary supply.
Ethereum network transaction costs have plummeted to $1.15, according to blockchain analytics company Santiment, the lowest figure since December of last year.
Because Ethereum’s network traffic has been decreasing, transaction fees have been going down. On September 21st, while performing normal asset consolidation across wallets, Binance increased the network’s average transaction cost beyond $10.
This year’s meme currency frenzy and peak NFT trading volumes may have mitigated the effect of these transactions on network costs if they had taken place earlier in the year.
Since no other major network operations occurred at the same time, Binance’s actions had a noticeable impact on the gas prices. This highlights how Ethereum network activity has cooled as a result of the present market circumstances.
This drop in network activity is being seen as a good sign for Ethereum by market watchers. According to Santiment, falling Ethereum costs tend to coincide with rising network use.
At $1.15, Ethereum transaction costs are at an all-time low for the year 2023. When the price of circulating ETH drops, its usefulness increases. Added value has the potential to boost market capitalization, as Santiment puts it.
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