Ethereum, the second-largest cryptocurrency by market capitalization, is witnessing a remarkable shift in transaction dynamics. Ethereum’s recent drop in transaction costs underscores notable improvements in network efficiency, contrasting starkly with the high fees experienced during its previous surge in value in October and November 2021.
Santiment, a market intelligence platform with on-chain analysis and social metrics for cryptocurrencies, shared data indicating a significant decline in Ethereum’s transaction costs.
The average cost per transaction on the network has significantly reduced from $9.35 to $63 per transaction. These reduced fees partly stem from the successful transition to Ethereum 2.0. This transition has alleviated congestion, making the network more cost-effective and accessible for users. Historically, lower fees and decreased network congestion have facilitated broader Ethereum adoption by accommodating diverse use cases.
Such developments have been the key to sustaining Ethereum’s relevance and fostering its growth trajectory in the competitive cryptocurrency landscape. Consequently, Ethereum’s newfound affordability enhances its appeal to developers and users alike, potentially driving further adoption and innovation within the ecosystem.
Crypto analyst 52kSkew shared insights on X, highlighting concerns over the Ethereum 4-hour chart, emphasizing potential repercussions for altcoins. The analyst warns of potential downward pressure on altcoins if BTC and ETH fail to attract buying interest soon.
Observing the ETH 4-hour chart, 52kSkew notes that continued weakness in price, especially in relation to the trend, could result in undesirable outcomes for altcoins. Despite this caution, the analyst expresses a willingness to buy during significant market downturns, particularly at key high-timeframe (HTF) levels, such as the $3400 range.
Looking at the current market performance, the broad market landscape is facing a downtrend as the leading cryptocurrency, Bitcoin, has faced a sharp correction. BTC has declined from the $73k to 66k range, a decrease of 7% on the daily time frame. The broad decline has dropped the total crypto market cap by 6%.
As of this writing, Ethereum was trading at $3,733, down by 7.42% in the past 24 hours. ETH has dropped from the $4k level and is seeking support at $3,600 as the Bears outshine the Bulls. ETH’s market capitalization had faced a decline, falling by 7% with a value of $442 billion. However, the trading volume is on the increase, gaining 44%, elevating the value to $31 billion.
