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According to Santiment, The average transaction fee on Ethereum (ETH) has fallen to its lowest level since December 2020.
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Previously Ethereum (ETH) network was congested, transactions were slow and expensive, making them unaffordable for many small investors. Because of ETH high fees many users and developers have moved to other blockchains, but now Ethereum fees have fallen to multi-month lows.
According to Santiment latest tweet, the average transaction fee for Ethereum (ETH) has dropped to levels that were not seen sinceDecember 2020.
Read: Goldman Sachs Report: Ethereum Has the Potential To Surpass Bitcoin As A Store Of Value
Santiment writes:
“Ethereum’s average fees are down to $2.19, which is the lowest the #2 market cap asset has been since December 2020. This is a promising sign that ETH’s utility can rise with little impact of fees standing in the way of healthy circulation.”
The average transaction fee for an Ethereum (ETH) transaction is as low as $2.19 in mid-July 2021. Other trackers found that the average transaction fee for Ethereum (ETH) is $2.75.
💸 #Ethereum's average fees are down to $2.19, which is the lowest the #2 market cap asset has been since December, 2020. This is a promising sign that $ETH's utility can rise with little impact of fees standing in the way of healthy circulation. https://t.co/KNAFuBuWWQ pic.twitter.com/qR0WBU5kVf
— Santiment (@santimentfeed) July 11, 2021
The average fees are at their lowest level in multi-months. The average commission per Ethereum transaction (ETH) is below $1.40.
What Does This Signify?
Ethereum (ETH) fees have fallen 97 percent since their peak. Analysts at Santiment see this as a positive sign of the Ethereum (ETH) network.
Lower fees mean more convenient transactions and more users on the Ethereum network (ETH).
This signifies that ETH’s utility could increase with little impact of fees that discourage healthy circulation.
Read: Less Risk Of Major Sell off As Ethereum Balances See Big Drop On Exchanges
Many decentralized applications were ported to other smart contract environments by their teams in the wake of the high Ethereum (ETH) network fees. But now things are changing, and low fees will encourage more dapps to adopt Ethereum. ETH ecosystem will grow more speedily when small and medium-size investors are encouraged to use ETH more frequently because of its falling fees.
Previously the primary beneficiaries of congested Ethereum were Polygon (formerly Matic Network) and Binance Smart Chain (BSC).