The transaction costs for Ethereum (ETH), the second-largest cryptocurrency by market capitalization, have unexpectedly dropped, making it far less expensive for users to conduct transactions on its blockchain.
Over the previous week, the average fuel price for Ethereum transactions was only $1.13, according to on-chain analytics company Santiment. It is a significant drop from the hefty prices that were incurred earlier in May, indicating a change that is advantageous to network customers.
Ethereum Gas Fees at Yearly Lows, Affordable Transactions,Ethereum Gas Fees at Yearly Lows, Affordable Transactions,Ethereum Gas Fees at Yearly Lows, Affordable Transactions
Over the previous week, the average fuel price for Ethereum transactions was only $1.13, according to on-chain analytics company Santiment. It is a significant drop from the hefty prices that were incurred earlier in May, indicating a change that is advantageous to network customers.
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In fact, during the last week, layer-2 solutions’ average transactions per second (TPS) were over six times greater than the Ethereum network’s.
As a result, at 10.6 million, the liquid supply of ETH is at its lowest point in five and a half years. On the other hand, 96% of all ETH in circulation is now stored in self-custody wallets, where the amount of ETH has increased to an all-time high of 115.8 million.
The main goal of layer-2 scaling solutions was to reduce Ethereum’s on-chain transaction congestion, and it looks like they are doing a good job of it. Reduced petrol costs, in Santiment’s opinion, may promote more Ethereum adoption and user participation.
The ongoing withdrawal of Ethereum holdings from centralised cryptocurrency exchanges is another factor that has contributed to the decrease in petrol fees.
According to Santiment’s research, more than 110,000 ETH left exchange platforms on October 4th, marking the biggest outflow of ETH tokens from exchanges in more than six weeks.
Possible Future Rise In The Price Of Ethereum
Although there has been a general sideways trend in the cryptocurrency market, ETH’s present cheap transaction costs may lead to a possible price comeback. Santiment’s analysis of historical data indicates that reduced ETH costs frequently result in higher utility and a subsequent price recovery.
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At $1,634.98, Ethereum’s price has dropped somewhat during the past 24 hours and over the last seven days, falling by 2.23%. Although it is difficult to anticipate prices in the erratic cryptocurrency market, Ethereum’s future performance may be impacted by the advantageous fee environment.
Ethereum Gas Fees at Yearly Lows, Affordable Transactions,Ethereum Gas Fees at Yearly Lows, Affordable Transactions,Ethereum Gas Fees at Yearly Lows, Affordable Transactions