The phrase “Ethereum transaction costs” has long been engraved in the minds of investors as “expensive”. This definition is now slowly disappearing. According to data shared by blockchain analysis company Arcane Research, the new adjective for transaction fees is now “very cheap”.
Based on CoinMetrics data, Arcane announced that the seven-day average of Ethereum transaction fees is the lowest since August last year. Transaction fee costs continue to go down rapidly from the second week of January.
While the shared data still does not mean that everything is cheap for consumers, it shows that one more burden is gradually being lifted from the investors.
Arcane has set the cost of trading an NFT at around $15. In the fall of 2021, the cost of trading an NFT was at $200.
The decrease in transaction fees continues to progress simultaneously with the decrease in Ethereum price. The price of Ethereum has dropped by about 12% last week, while it has dropped by an average of 15% last month. As Ethereum's value falls, transaction fees continue to get cheaper in dollar terms.
If we take a closer look at the CoinMetrics data, it appears that Ethereum transaction fees have reached a six-month low. Blockchain networks like Solana and Avalanche, which are new compared to Ethereum, have earned the nickname “Ethereum killer” by offering much lower transaction fees and higher speeds. In the coming days, if the Ethereum price rises again, the interest in NFTs is expected to increase, while Ethereum transaction fees are expected to rise sharply in line with this interest.
Ethereum price also started a decent recovery from $2,440. A successful break above the $2,750 level could push the price towards the $2,880 level while ETH climbs above $2,700. ETH rose 6% in a day and 9% in a week. On the other hand, there could be another decline below $2,600. The next key support is near the $2,550 level, below which the price could revisit $2,500.