In crypto, we talk about gas fees to refer to the fees paid by users to carry out transactions or carry out operations on a given blockchain. Their prices vary from one blockchain to another, they constitute levers supporting or hindering the adoption of cryptos.
Ethereum (ETH) crypto gas fees, lowest since November 2022
Gas fees linked to Vitalik Buterin’s Ethereum platform have seen a record drop. This is what recent data provided by Santiment shows. Indeed, according to the crypto data provider, Ethereum gas fees are currently around $1.13 per transaction, on average.
This is abouta remarkable decline. Indeed, we have to go back to November 2022 to see these crypto transaction fees fall to such a low level. Since this period, these have been above $1.15 per transaction. What could this trend mean in the current context?
For Santiment, this development can be analyzed as a potential resurgence in the price of ether, Ethereum’s native crypto. The data provider, however, tempers his point of view by emphasizing that this development is not in itself an infallible indicator regarding the valuation of ETH.
According to Santiment, the last time Ethereum’s gas fees fell below $1.15, the price of ether, its native crypto, had bottomed out. A dynamic followed by a correction, then a resurgence of the usefulness and value of the crypto ETH.
ETH price heading to new highs?
Santiment believes that the recent accessibility of Ethereum transactions could set the stage for further performance. The reason is that historically the falling cost of ETH crypto has been associated with an increase in utility and a subsequent rise in its price.
These projections paradoxically come into play in a context where the quantity of ETH held outside of crypto exchanges has reached a record level. Indeed, in a single day this week, Ethereum recorded its largest exchange outflow since Monday, August 21.
Around 110,000 ETH, valued at around $181 million, left crypto exchange platforms. A movement which affected the supply of ETH on exchanges, which fell to around 10.6 million ETH. A record not reached since May 2018.
Nonetheless, this trend coincides with the launch of Ethereum ETFs in the United States. Monday, October 2, six asset managers launched into this market intended to expand the possibilities for institutional investment in ether.
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