PANews, April 17 - According to Cointelegraph, on-chain analytics platform Santiment reports that transaction costs on the Ethereum network have dropped to their lowest level in five years due to low activity on the blockchain. Santiment's Marketing Director Brian Quinlivan noted that Ethereum network fees are currently approximately $0.168 per transaction. Along with the reduction in fees, the number of people transmitting ETH and interacting with smart contracts has also decreased. When many people use Ethereum, users bid higher fees to expedite transaction confirmation, driving up average costs. However, when the number of transactions decreases, users don't need to bid as high, leading to a drop in average fees. This is essentially a supply-and-demand system.

Quinlivan analyzed that from a trading perspective, low fees might hinder a price rebound; however, traders seem to be patiently waiting for global economic uncertainties to pass before increasing the frequency of transactions in Ethereum and altcoins.