Last month, the Ethereum (ETH) network became overloaded: transactions were inadequately expensive and slow. While many developers and users switched to other blockchains, Ethereum (ETH) fees printed multi-month lows.
According to the latest tweet shared by Santiment, a leading on-chain data vendor, both median and average fees for Ethereum (ETH) transactions dropped to levels unseen since the previous year.
💸 #Ethereum's average fees are down to $2.19, which is the lowest the #2 market cap asset has been since December, 2020. This is a promising sign that $ETH's utility can rise with little impact of fees standing in the way of healthy circulation. https://t.co/KNAFuBuWWQ pic.twitter.com/qR0WBU5kVf— Santiment (@santimentfeed) July 11, 2021
In mid-July 2021, the average fee for sending one Ethereum (ETH) transaction was as low as $2.19. According to other trackers, the median Ethereum (ETH) transaction fee is $2.75.
Median fees are also sitting at multi-month lows. The median commission for one Ethereum (ETH) transaction is below $1.40.
Historical Ethereum (ETH) fee highs were registered amidst the "dog-coin" euphoria in mid-May. It was $70 to authorize one Ethereum (ETH) transaction.
What does this mean?
As a result, Ethereum (ETH) fees are down 97 percent down from their peak. Santiment analysts treat this as a positive sign for the Ethereum (ETH) network.
Lower fees mean a lower level of congestion and result in more comfortable transactions on the Ethereum (ETH) network:
This is a promising sign that $ETH's utility can rise with little impact of fees standing in the way of healthy circulation.
Amidst the perennial collapse of the Ethereum (ETH) network registered in the last few months, many decentralized applications were moved by their teams to other smart contract environments.
Polygon (previously Matic Network) and Binance Smart Chain (BSC) are among the top beneficiaries of the overloaded Ethereum (ETH).