• Latest
  • Trending
  • All
Ethereum Fee Remains Low Despite Price Rise: What It Means

Ethereum Fee Remains Low Despite Price Rise: What It Means

March 20, 2023
Phoenix Group Acquires $380 Million Worth of Green Mining Equipment from WhatsMiner

Phoenix Group Acquires $380 Million Worth of Green Mining Equipment from WhatsMiner

December 8, 2023
This Solana-Based Meme Coin Reached All-Time Highs Again, Even As Shiba Inu, Dogecoin Slip

This Solana-Based Meme Coin Reached All-Time Highs Again, Even As Shiba Inu, Dogecoin Slip

December 8, 2023
eth2 quick update no. 22

eth2 quick update no. 5

December 8, 2023
Litecoin Whales Maintain Positions Amidst Declining Small Wallet Activity In The Last 10 Days

Litecoin Whales Maintain Positions Amidst Declining Small Wallet Activity In The Last 10 Days

December 8, 2023
Cathie Wood’s Ark Invest Trims Bitcoin Exposure, Sells $2.9M Worth Of GBTC Shares Amid Crypto Market Volatility

Cathie Wood’s Ark Invest Trims Bitcoin Exposure, Sells $2.9M Worth Of GBTC Shares Amid Crypto Market Volatility

December 8, 2023
Solana-Based DeFi Project Jito (JTO) To Kick Off Airdrop As Coinbase Announces Support for the Token

Solana-Based DeFi Project Jito (JTO) To Kick Off Airdrop As Coinbase Announces Support for the Token

December 8, 2023
Surge in Price amid Subdued Interest

Surge in Price amid Subdued Interest

December 8, 2023
Versatus Labs Raises $2.3M to Bring World’s First Stateless Rollup

Versatus Labs Raises $2.3M to Bring World’s First Stateless Rollup

December 8, 2023
Redwater and Lavrium Announce Strategic Partnership for Bitcoin Mining Optimization

Stronghold Announces November 2023 Bitcoin Mining Update -December 07, 2023 at 04:16 pm EST

December 7, 2023
Dogecoin Forecasted to Hit $1: Here’s When

Dogecoin Forecasted to Hit $1: Here’s When

December 7, 2023
Ethereum Whale With Over $60 Million In Unrealized Profits Moves Coins To Exchange

Ethereum Whale With Over $60 Million In Unrealized Profits Moves Coins To Exchange

December 7, 2023
Dolphin and Shark Wallets Now Hold Over 18M LTC as Litecoin Halving Nears

Litecoin (LTC) Record Shocking Wallet Exodus, A Twist May Lie Ahead

December 7, 2023
Friday, December 8, 2023
DLT EMPIRE
  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoin
  • Crypto Mining
  • Dogecoin
  • Litecoin
  • Market
No Result
View All Result
DLT EMPIRE
No Result
View All Result
Home Ethereum

Ethereum Fee Remains Low Despite Price Rise: What It Means

by Cuevas Antonio
March 20, 2023
in Ethereum
0
Ethereum Fee Remains Low Despite Price Rise: What It Means
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


On-chain data shows the Ethereum transaction fee has remained low despite the recent price rise. Here’s what this may mean for the market.

Ethereum Fees Saw Huge Spike During The Local Bottom

As per data from the on-chain analytics firm Santiment, the ETH transaction fee has fallen below $2 per transfer now. The relevant indicator here is the “average fees,” which measures the total amount of fees (in USD) that investors have to attach to their Ethereum transaction in order for it to go through on the blockchain.

The value of this metric can fluctuate depending on the traffic that the network is receiving. Generally, when there are a large number of transfers happening at once, transactions may take more time to be executed. So, those that want their transfers to go through quickly during such times of congestion simply attach a higher fee with their transactions to make sure that they are prioritized by the network.

On the other hand, when there aren’t many users making moves on the chain, the average fees can plummet since there aren’t many investors competing against each other to get their transactions done quicker anymore.

Because of this relationship, the average fees indicator can provide insight into whether the Ethereum network is seeing a high amount of activity or not at the moment.

Now, here is a chart that shows the trend in the ETH average fees over the last few months:

Ethereum Average Fees

Looks like the value of the metric has observed some decline in recent days | Source: CryptoQuant

As displayed in the above graph, the Ethereum average fees had seen some pretty high values earlier in the month when the ETH price had plunged and hit a local bottom.

During this spike, the indicator had reached a peak of about $8.12, suggesting that holders were active back then. This high network traffic naturally came in part from those who were applying selling pressure on the coin, thus the decline in the price.

However, that wasn’t all. The high fees would have also been a result of the buyers rushing in to buy the cryptocurrency at the low prices, hence why the asset’s value sharply shot up not too long after.

Ethereum has continued this fresh price surge recently, with the asset even managing to break above $1,800 briefly during the weekend, a level that the coin hadn’t previously reached since August 2022.

As this rise in the value of Ethereum has occurred, however, the average fees have only trended down. Now, the indicator’s value has dropped to just $1.75, implying that the network isn’t too hot right now despite the rally.

Santiment thinks that this could be a good sign for ETH as it means the price wouldn’t encounter any notable transaction barriers currently, something that could help open the door to $2,000 for the asset.

ETH Price

At the time of writing, Ethereum is trading around $1,780, up 12% in the last week.

Ethereum Price Chart

ETH seems to have shot up recently | Source: ETHUSD on TradingView

Featured image from DrawKit Illustrations on Unsplash.com, charts from TradingView.com, Santiment.net





Source link

Tags: EthereumFeeMeansPriceRemainsRise
Share196Tweet123Share49
Cuevas Antonio

Cuevas Antonio

  • Trending
  • Comments
  • Latest
ChatGPT is Being Used to Make ‘Quality Scams’

ChatGPT is Being Used to Make ‘Quality Scams’

March 20, 2023
Rise of AI-Powered Cheating: Challenges and Solutions for Educators

Rise of AI-Powered Cheating: Challenges and Solutions for Educators

March 20, 2023
Former FTX US President Reportedly Quit After ‘Protracted Disagreement’ With Bankman-Fried

Former FTX US President Reportedly Quit After ‘Protracted Disagreement’ With Bankman-Fried

April 10, 2023
Silicon Valley Bank: Bitcoin investors in panic as market goes sideways

Silicon Valley Bank: Bitcoin investors in panic as market goes sideways

0
24 Crypto Terms You Should Know

24 Crypto Terms You Should Know

0
Bitcoin, Ethereum, Dogecoin Rally As Team Biden Cushions SVB Blow

Bitcoin, Ethereum, Dogecoin Rally As Team Biden Cushions SVB Blow

0
Phoenix Group Acquires $380 Million Worth of Green Mining Equipment from WhatsMiner

Phoenix Group Acquires $380 Million Worth of Green Mining Equipment from WhatsMiner

December 8, 2023
This Solana-Based Meme Coin Reached All-Time Highs Again, Even As Shiba Inu, Dogecoin Slip

This Solana-Based Meme Coin Reached All-Time Highs Again, Even As Shiba Inu, Dogecoin Slip

December 8, 2023
eth2 quick update no. 22

eth2 quick update no. 5

December 8, 2023

Recent News

Phoenix Group Acquires $380 Million Worth of Green Mining Equipment from WhatsMiner

Phoenix Group Acquires $380 Million Worth of Green Mining Equipment from WhatsMiner

December 8, 2023
This Solana-Based Meme Coin Reached All-Time Highs Again, Even As Shiba Inu, Dogecoin Slip

This Solana-Based Meme Coin Reached All-Time Highs Again, Even As Shiba Inu, Dogecoin Slip

December 8, 2023
eth2 quick update no. 22

eth2 quick update no. 5

December 8, 2023

Categories

  • Altcoin
  • Altcoin News
  • Altcoins
  • Artificial Intelligence
  • Bitcoin
  • Blockchain
  • Blockchain Games
  • Business
  • Crypto
  • Crypto Mining
  • Cryptocurrencies
  • Cryptocurrency
  • Culture
  • Defi
  • Dogecoin
  • Economy
  • Education
  • Entertainment
  • Ethereum
  • Featured
  • Gambling
  • Governance
  • Health
  • Lifestyle
  • Litecoin
  • Market
  • News
  • Sports
  • Uncategorized
  • Web 3.0
  • World

Converter

Cryptocurrency Prices by Coinlib

© 2023 Dlt Empire | All Rights Reserved

No Result
View All Result
  • Home
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoin
  • Crypto Mining
  • Dogecoin
  • Litecoin
  • Market

© 2023 Dlt Empire | All Rights Reserved