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Low Transaction Fees Promote Ethereum’s Gradual Rebound

Published 01/11/2023, 03:30 AM
Updated 01/11/2023, 04:00 AM
©  Reuters Low Transaction Fees Promote Ethereum’s Gradual Rebound
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  • Low fees and ease of utility are behind the continued gradual recovery of Ethereum.
  • ETH’s price recovery coincides with dropping average transaction fees.
  • Lower fees on Ethereum might attract more DApps to the platform and create demand for ETH.

Data from Santiment suggest that a recovery is on the way for Ethereum, albeit a gradual one. According to a post on Twitter, the all-time high (ATH) of $4,858 may be a far-off target, but fundamental factors are pointing in the right direction for the flagship altcoin.

ETH achieved an ATH of $4,858 on November 10, 2021. It dropped from this level partly due to the consequences of bloated fees. At the time, average transaction fees on the blockchain were over $60. As a result, several projects left Ethereum for other competing blockchains.

Santiment’s report shows that there has been a significant crash in Ethereum’s transaction fees. From above $60 in 2021, it has fallen to below $2 as of the time of the report. It forms the basis for predicting an imminent recovery for the largest DApps development platform.

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