Fees on the Ethereum (CRYPTO: ETH) blockchain have dropped to a two-year low of $0.90 per transaction.
What Happened: Ethereum’s average transaction fee is down to $0.88, as per data shared by blockchain analytics platform Santiment on Sunday.
#Ethereum's fees are down to an average of just $0.88 per transaction, due to prices down 75% since the November #AllTimeHigh and utility dramatically falling as a result. July, 2020 was the last time we saw $ETH average fees below the $0.90 threshold. https://t.co/1sKGht0bb4 pic.twitter.com/z1MxTSngJhAnalysts attribute the drastic decline in fee to Ethereum’s price falling 75% below its all-time high ahead of $4,800. The weaker price action likely led to the blockchain’s utility falling dramatically, said Santiment.— Santiment (@santimentfeed) July 10, 2022
The lower fees have also resulted in a decline in the network’s revenue for the quarter. A report from Bankless examining the state of Ethereum in Q2 shows that network revenue fell 33.4% from $1.9 billion to 1.28 billion.
“Of this, $1.09B of ETH (85.4% of it) was burned, removing it from circulating supply,” the report stated.
“This decreased demand for blockspace is likely attributable to the market weakness during the quarter, which dampened speculative activity.”
Price Action: The cryptocurrency market saw a 3% decline on Monday. According to data from Benzinga Pro, BTC was trading at $20,517 at press time, down 3.5% over the last 24 hours. ETH was trading at $1,153, down 3.6% over the same period.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga