Bitcoin and Ethereum transaction fees have dropped to their lowest levels in 7 months
Bitcoin and Ether transaction fees fell to their lowest levels in several months as the crypto market experienced one of the bloodiest weeks of 2024.
On June 23, the average Bitcoin transaction fee reached $1.93 per transaction, the lowest level since October 2023. Low fees on the Bitcoin network are a sign of low network activity and less competition.
Transaction fees on the Bitcoin network often increase during times of high market volatility, especially when prices are rising. The increased price assumption is growing competition for block space.
As a result, every major bull run since 2012, with the exception of the 2021 bull run, when the price of Bitcoin (BTC) touched $69,000, transaction fees were relatively low.
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ETH gas payment has reached historical lows
On the other hand, Ether (ETH) gas prices have also reached new lows, with gas prices reaching a low of 1 GW, the lowest in years. The current gas charge on the Ethereum network is about 4.5 gwei.
Gwei is the name of Ethereum and is used on the Ethereum network to buy and sell goods and services. One Gwaii is one billionth of one ETH.
The low gas charge on Ethereum is due to the movement from the Ethereum base layer to the layer-2 network after the March Denkun update.
Since the Denkun update, the average price of gas on Ethereum has dropped by 92%. According to a report from Layer2 Insider, Layer-2 Networks pocketed $950,000 last week.
The problem of the crypto market
The lowest transaction fees on the two major crypto networks comes as the crypto market is having one of its worst weeks of 2024. Several altcoins rallied in double digits, while the price of Bitcoin fell below $63,000.
The crypto market has seen a surge in the past six months, with top cryptocurrencies such as Bitcoin and a few altcoins hitting new highs.
However, over the past two weeks, the bears have been in command, pulling billions out of the open market, while position holders have suffered huge losses.
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