Ethereum network fees hit their low since July 2021
Analysts noted a pattern whereby the ETH rate begins to rise after the average transaction fee falls below $5
26.05.2022 - 08:45
519
3 min
0
What’s new? On May 24, the average fee per transaction on the Ethereum network was $2,54, this is the lowest since July 2021. Analytics firm Santiment noted that “historically, ETH prices rise after average transactions dip below $5.”
🤑 #Ethereum's average fees are at an extreme low, costing traders just $2.54 per transaction currently. This is the lowest $ETH cost level since July. Historically (but by no means automatically), $ETH prices rise after average transactions dip below $5. https://t.co/JS3paxdfwz pic.twitter.com/hsc9BoGwPx— Santiment (@santimentfeed) May 24, 2022
Why have fees decreased? According to Glassnode, the number of transactions on the Ethereum network reached a monthly low of 43 924 994 on May 25. Accordingly, the fewer active users, the lower the average fee on the network.
📉 #Ethereum $ETH Number of Transactions (7d MA) just reached a 1-month low of 43,924.994View metric:https://t.co/7zNXcnxY9Y pic.twitter.com/0iRLp9e0oF— glassnode alerts (@glassnodealerts) May 25, 2022
Cryptocurrencies are currently in a bear market, which is also reflected in the ETH rate. As of May 26, 2022, the cryptocurrency is trading at $1 920 (according to Binance).
What happened before? Ethereum co-founder Vitalik Buterin announced the release date of Ethereum 2.0. According to him, the network’s merge from the Proof-of-Work (PoW) consensus algorithm to Proof-of-Stake (PoS) would take place in August 2022. However, the developer noted that this date could be moved to September or October if difficulties arise.
Amid a drop in the number of transactions on the mainnet, there is an increased interest in the Ethereum Name Service (ENS), a domain name service. The number of new registrations since the beginning of May exceeded 304 000. ENS lead developer Nick Johnson noted that in less than a month, the metrics already reached the all-time high for all tracked metrics — registrations, renewals, revenue, and income in ETH and USD.
For more details on how blockchain fees work and are calculated, see GetBlock Magazine’s article.
Useful material?
Telegram 
Twitter Market
According to the founder of TRON, the leading US crypto exchange asked for several hundred million dollars for the listing of TRX
Nov 4, 2024
Incidents
The company conducted fictitious trading for six years to inflate the trading volume of tokens of several companies, receiving payment for these services
Nov 1, 2024
Market
1,5 million addresses have already left applications
Oct 31, 2024
Business
The company began investing in bitcoin in 2020, and since then, the value of its securities has risen by 1700%
Oct 30, 2024
Mining
The Deputy Energy Minister explained that in deficit regions, it is impossible to allocate large capacities for industry enterprises until 2030
Oct 30, 2024
Market
Customers will also be able to withdraw funds to bank accounts using cards
Oct 30, 2024
Cryptocurrency rates
-
Bitcoin
$69 336
BTC
+2.42%
-
Ethereum
$2 422.49
ETH
+1.2%
-
BNB Smart Chain
$563.64
BSC
+2.11%
-
Ripple
$0.512737
XRP
+2.05%
-
Dogecoin
$0.170412
DOGE
+8.05%
-
Cardano
$0.333025
ADA
+2.3%
-
Bitcoin Cash
$342.39
BCH
+4.18%
-
Polkadot
$3.85
DOT
+3%
-
Litecoin
$65.51
LTC
+0.18%
-
Stellar XLM
$0.093304
XLM
+2.48%