What all users are calling for Ethereum is happening recently. Transaction fees are the lowest in the last 5 months, according to Glassnode.
Ethereum transaction fees are falling
The current transaction fees in the ETH network correspond to the lowest values for last 5 months. Company analysts Glassnode they are based on a weekly moving average in order to avoid the effects of daily fluctuations.
The last 5 – month historical minimum was reached on September 27, 2021. On the hourly chart of fees, we can see several peaks that have been reached in recent months. One of them was recorded in November 2021, when the NFT sector boomed. As the network was still not fully prepared for a proof-of-stake consensus, the fees reached an absolute peak during this period. A slight decline followed in December, which was caused by a decline in the crypto market.
The decrease in network fees can be demonstrated by the increased interest of investors in BTC, which they still consider a more efficient store of value compared to ETH. Therefore, during correction periods and recessions, investors tend to reallocate their assets in favor of BTC, which of course reduces demand. Another important factor is reducing the number of transactions in the ETH network which is due to better competition. Blockchains Solana, Cardano or Polkadot have higher scalability and efficiency.