Commissions on the #Ethereumnetwork have dropped dramatically, reaching the level of $1.63 per transaction. According to #Analysts at Santiment, this was a significant development for blockchain users. This drop opens up new opportunities for more frequent and affordable transfers, thereby encouraging more activity on the network. Low fees have always been a favorable factor for the growth of utility, as it enables users to conduct more #transactions at minimal cost.
Historically, at fee levels as low as $2, online activity increases as users seek to take advantage of more favorable terms. Such a rate is typically associated with the “bottom of the market” when the price of fees is minimal, which encourages more transfers and allows Ethereum($ETH
)to exhibit more dynamic behavior.
An average commission rate between $2 and $6 is considered the most common and is usually seen during periods of stability or flat market movement. During such times, activity does not peak but is kept at a stable level when users do not have a strong fear of missing out (#fomo ).
When the average commission rises to $6-$10, it indicates an increase in market interest, usually characteristic of bull rallies. It is at times like these, when users start actively buying and selling assets, that commissions rise due to the increased load on the network.
However, the highest commissions - over $10 - signal market overheating and often coincide with peak values on the charts. Then the price of an asset reaches its maximums, and users massively fix profits or get rid of their positions. During such periods, high transaction costs suppress activity, making transfers less attractive.
