Ethereum's Network Costs Hit Historically Low Milestone!

💸 Ethereum fees are at 5-year lows, dropping to a cost of just $0.168 per transaction. This large reduction in fees coincides with less people sending $ETH and interacting with smart contracts (e.g., DeFi, NFTs, etc.), as they fluctuate based on how network congestion.

Fees per transfer are paid in ETH, and Santiment converts those costs into USD for easier data comparison. You can at any time to follow along with Ethereum's fee fluctuations to find ideal times to transfer cost-effectively.

When many people are using Ethereum, users bid higher fees to get their transactions confirmed faster. This drives the average costs up. When fewer people are transacting, like we see now, users don’t need to bid much. As a result, the average fee drops. It's essentially a supply demand system.

For developers and users still building or testing apps on Ethereum's network, this is a great time to get cost-effective value.

With Ethereum's market value dropping 61% over the past 4 months, traders have skewed bearish toward the #2 market cap asset. Many appear to be patiently waiting for the global economic uncertainty to pass before scaling up their usual frequency of $ETH and other altcoin transactions. We can visibly see the increased sensitivity toward Ethereum discussions and tariff/economy news as prices have really threatened long-time support levels.

From a trading perspective, historically low fees like this will often precede price rebounds, making buys at these levels generally considered to be lower risk than usual. Generally, fee levels under $1 are a pretty promising sign that the crowd has become disinterested. Just remember that there is no set guaranteed "bottom" or "top" level every time fee costs breach below or above a certain level.

Overall, Ethereum has been largely written off by the crowd. Several traders have given it a meme status as other top caps (like XRP Cardano) enjoyed major breakouts themselves over the past year. But remember that the more the retail community leans away from an asset (especially one with still thriving development), the higher the likelihood of an eventual surprise rebound with little resistance.

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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.