ETH Transaction Fees Drops to Lowest Since October 2023

• Santiment pointed out that Ethereum transaction fees are at their lowest since October.
• ETH average fee level dropped to $1.12 per network transaction.
• Santiment also confirmed that ETH’s circulating supply reached.

Ethereum’s historically high transaction fees have been a persistent issue, prompting the development of Layer 2 chains and scaling solutions to provide lower-cost alternatives for users.

However, recent data from blockchain analysis platform Santiment shows a significant improvement, with Ethereum’s average fee level dropping to $1.12 per network transaction, one of the lowest levels seen since October 18. 

Santiment stated in the X post:

“With markets mainly retracing over the past 6 weeks, the lack of demand and strain on the network may help turn ETH and associated altcoins around sooner than many may expect.”

As per CoinMarketCap data, currently, over 122 million Ether is in circulation, with this sharp increase attributed to the consistent decline in the burn rate over the past two weeks. Moreover, data from Ultrasound Money shows that Ethereum’s circulating supply has surged, reaching the highest level since March.

The gas fee, a measure of the computational effort required to execute operations or transactions on the Ethereum network, at the time of writing is 10 Gwei, up from a low of 4.48 Gwei. Meanwhile, gas fees are approximately $0.60, down from the peak of $3.788 recorded in May 2023.

Santiment also pointed out that traders historically move between sentimental cycles of feeling that crypto is going “to the moon” and feeling that “it is dead.” The platform stated that transaction fees will tend to peak when traders are bullish and “go back to their resting state around price bottoms.”