[Analysis] "Ethereum Fees at 5-Year Low... High Possibility of Rebound"

Ethereum (ETH) transaction fees have recently hit their lowest point in five years.

On-chain analysis platform Santiment reported on the 17th (local time) that "the current Ethereum transaction fee is an average of $0.168 per transaction," stating that it is "the lowest level in the last five years." Santiment analyzed that "network fees vary depending on congestion," and "the sharp decline in fees has coincided with a recent decrease in Ethereum transfers and smart contract usage."

Santiment emphasized that transaction fees are determined by 'supply and demand.' Santiment stated, "When the Ethereum network is congested, users competitively offer higher fees to increase processing speed, causing the average fee to rise," and "during periods of reduced usage like now, the competition for fee bidding decreases, leading to lower average fees." Santiment added, "Ethereum's market capitalization has fallen by 61% over the past four months, strengthening bearish sentiment," and "most investors are not increasing the frequency of trading Ethereum and other altcoins until global economic uncertainties are resolved."

It also hinted at the possibility of an Ethereum price rebound. Santiment stated, "Generally, when fees are below $1, it is interpreted as a signal of reduced public interest," and "historically, low fees often precede price rebounds." It continued, "Buying in the current range is generally considered a low-risk choice."