The data on the series shows that the ETHEREUM treatment fee has decreased to the lowest level in the years recently. Here is what this can mean at ETH price.
The average ETHEREUM fee is now worth $ 0.168 only
In a new vision mailAnalysis Company discussed the Santiment series the last trend in the average ETAREUM fee. “Average of fees” is a scale, as its name suggests, tracking the average amount of drawings that the messengers hang on the ETH network with their transactions.
The value of this indicator is directly associated with the amount of traffic that Blockchain deals with. The reason behind this is the fact that the network only has a limited ability to deal with transportation.
When the chain is busy, the transportation processes can remain pending until the transactions that preceded it. Those who want to process their transactions as soon as possible can choose to attach greater fees than average, so that auditors give them priority.
At high traffic times, this type of competition between users can raise the average fees to large levels. When there is a little activity, the messengers do not have a little incentive to pay any noticeable amount of fees, so that the value of the scale can remain low.
Ethereum seems to witness this last type of conditions recently, as the average fees recorded a decrease.
Looks like the value of the metric has declined to a low level in recent days | Source: Santiment
As shown in the graph above, the average ETHEREUM fee has decreased to a decrease of $ 0.168 in recent times, which has been the lowest since 2020. This means that the network activity is historically low at the present time.
According to the Analysis Company, this may not actually be very bad from the trading perspective, as low fees can precede heights in the price of encrypted currency.
Below is a plan that shows an example of this trend at work:
The past trend in the transaction fees of ETH | Source: Santiment
As visible in the graph above, the average ETHEREUM fee under the $ 1 brand in 2023 led to a climb momentum. The interpretation behind this pattern may lie in the fact that low sincerity periods can indicate lack of attention from the crowd.
Historically, ETH and other digital assets tend to move in a way that contradicts the expectation of the majority. This means that lack of optimism can lead to rebound balls, while excessive noise can lead to peaks. From the graph, it is clear that the Q1 2024 ETH summit came when the scale exceeded $ 15, indicating a large number of excitement.
“In general, the levels of less than one dollar fee are a large sign of that the crowd has become unintended,” the analysis company notes. “Just remember that there is no guaranteed level” bottom “or” higher “every time the cost fees below or higher than a certain level.
ETH price
At the time of this report, ETHEREUM is trading about $ 1,600, an increase of more than 1 % in the past 24 hours.
Looks like the price of the asset hasn't moved much recently | Source: ETHUSDT on TradingView
Distinctive image from Dall-E, Santiment.net, Chart from TradingView.com
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