Ethereum Transaction Fees Drop to Lowest Level in Five Years

Ethereum transaction fees have dropped to a five-year low, averaging approximately $0.168. This decline coincides with reduced network activity as users withdraw amid economic concerns.

Key Developments

Average transaction fee on Ethereum is now $0.168.
Decreased activity includes fewer Ether transactions and smart contract usage.
Market uncertainty has led traders to remain cautious.
Long-term holders are beginning to sell positions in the $1,500 to $1,700 range.
Upcoming Pectra upgrade on May 7 will enhance network capabilities.

Pectra Upgrade Details

Increases layer-2 blob capacity from three to six.
Reduces transaction fees and alleviates network congestion.
Allows payment of fees with stablecoins like USDC and DAI.
Raises maximum staking limit from 32 ETH to 2,048 ETH.
Second phase planned for late 2025 or early 2026 focuses on data storage efficiency.

Despite the low fees, Ethereum's price has decreased by over 11% in the last two weeks, currently trading just below $1,600. The market is experiencing mixed signals regarding future movements due to both selling activity and ongoing developments.