Ethereum network fees have plummeted to their lowest level in five years, reaching approximately $0.168 per transaction, according to Santiment's April 17 report. This decrease coincides with reduced activity on the blockchain, including fewer Ether (ETH) transfers and interactions with smart contracts. The drop in fees reflects a decrease in demand for transaction confirmations.
Santiment's Brian Quinlivan noted that low fees could precede a price rebound, but traders are awaiting broader economic stability. ETH has decreased in the past 14 days, trading near $1,600. Market sensitivity to economic news has increased as prices approach long-term support levels.
The Pectra upgrade, aims to further reduce transaction fees and network congestion. Phase one will double the layer-2 blob capacity and allow fees to be paid in stablecoins. Further enhancements are expected to enhance scalability.