Ethereum transaction costs plummet 70%, while price continues to struggle

Ethereum (ETH) has been having a hard time lately. Whereas in the previous bull market, the Munt was still seen as a big challenger of Bitcoin (BTC), it now seems to be the Pispaaltje of the crypto sector. The course is left behind, a new all-time high is not nearly in sight, and now it also appears that the network sees less activity. This is noticeable in the transaction costs, which have fallen fast to the lowest level since 2020.

ETH transactions now 70% cheaper

According to recent data from The Block, the transaction costs on the Ethereum network have fallen by more than 70% in a short time. On February 15, the seven -day average was $ 0.77, while a week earlier it was $ 2.57. The transaction costs are now at their lowest level in more than four years, namely since July 2020.

For anyone who uses Ethereum to send value, this is of course good news. After all, you pay less to be able to use the blockchain. Yet there is also another side of the coin. Falling transaction costs are a signal that the activity on the network decreases. After all, less crowds means less competition to a place in the transaction blocks, which means that the reimbursements go down.

Ethereum is not the only one, the Bitcoin network is also drying up. Earlier this month you could read that the number of transactions there at the lowest point is in up to eleven months.

Ethereum course heavy pressure

Transaction costs have always been a tricky point for Ethereum. In times of high activity, the costs quickly shoot through the roof. That made the network less accessible for small users. But at the moment they may long for those towering costs. That would indicate a high demand for the network, what the course of Ethereum could do well.

And that can use it. The course of Ethereum is not in good shape. The Altcoin King is no less than 44% below its all-time High from 2021. In December it was well on its way and it was above $ 4,000 (16% below the record), but in the past two months the rate has been with up to 47 % dropped.

In the meantime, Ethereum is approaching $ 3,000 again, but the patience is now gradually starting to get up for many investors.

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