Ethereum Gas Fees Plummet, Boosting Network Activity
Ethereum’s transaction costs have fallen dramatically. The average fee is now just $0.41, down from a peak of $15.21 over the past two years. This drop suggests the network isn’t as busy as before, which could be good news for Ethereum’s (ETH) future price.
Lower fees make it easier for new investors to join the market. This usually happens when prices are stable or falling. Though, high fees frequently enough mean high demand, leading to temporary price drops.
A recent vote raised Ethereum’s gas limit to over 30 million. The gas limit is the max amount of computational resources a block can use. A higher limit means more transactions per block, reducing congestion and fees. The gas limit hit 35.9 million in the past 24 hours, as per gaslimit.pics.
Ethereum is trading at about $2,674, down 2% in the last day.Despite this,trading volume rose by 10%,showing growing investor interest. Over $60 million worth of ETH moved off exchanges, suggesting investors are holding onto ETH.
However, with $121 million in short positions and $90 million in long positions, traders remain cautious. The SEC’s decision on spot Ethereum ETFs with staking could be a big boost for ETH. As of Feb 18, total ETH ETF inflows reached $3.16 billion, according to SoSoValue.
Ethereum’s decentralized exchange activity is also rising. DefiLlama data shows a 24-hour trading volume of $2.62 billion, up from $1.1 billion on Feb. 16.This puts Ethereum close to Solana, which faces criticism over recent meme coin issues.
