Ethereum Fees Plummet 70%: A Sign of Weakened Demand

The Ethereum network's transaction fees have plummeted by 70% month-over-month, reaching their lowest level since July 2020, according to data from The Block. The 7-day moving average transaction fee on the Ethereum network dropped to $0.77 on February 15th, a significant decrease from the $2.57 recorded just a week prior.

This substantial decline in transaction fees has brought costs to their lowest level in four years when measured in US dollars. The last time transaction fees were this affordable on the Ethereum network was in July 2020. While lower fees typically encourage user activity, the magnitude of this drop and the long-term downward trend suggest that it is more likely due to weakened demand.

Meanwhile, Bitcoin network activity has also been on the decline, with transaction volume down 55% from its peak. This decrease in activity on both networks may be indicative of a broader trend in the cryptocurrency market, as investors and users alike grapple with the current market conditions.