On-chain data shows the Ethereum transaction fee has remained low despite the recent price rise. Here’s what this may mean for the market.
Ethereum Fees Saw Huge Spike During The Local Bottom
As per data from the on-chain analytics firm Santiment, the ETH transaction fee has fallen below $2 per transfer now. The relevant indicator here is the “average fees,” which measures the total amount of fees (in USD) that investors have to attach to their Ethereum transaction in order for it to go through on the blockchain.
The value of this metric can fluctuate depending on the traffic that the network is receiving. Generally, when there are a large number of transfers happening at once, transactions may take more time to be executed. So, those that want their transfers to go through quickly during such times of congestion simply attach a higher fee with their transactions to make sure that they are prioritized by the network.
On the other hand, when there aren’t many users making moves on the chain, the average fees can plummet since there aren’t many investors competing against each other to get their…
