In recent weeks, Ethereum (ETH), the main asset in the cryptocurrency market, has not received a warm welcome from the market due to price declines and unstable on chain performance. Overall, the overall situation of the cryptocurrency market has not significantly improved, as most counterfeit currencies have not been able to maintain an upward trend
In recent weeks, Ethereum (ETH), the main asset in the cryptocurrency market, has not received a warm welcome from the market due to price declines and unstable on chain performance. Overall, the overall situation of the cryptocurrency market has not significantly improved, as most counterfeit currencies have not been able to maintain an upward trend. However, the latest on chain news may bring some hope for Ethereum's price.
ETH average cost drops to its lowest level in 2023
The latest on chain data analysis highlights the significant decrease in Ethereum network costs, which may trigger a significant change in the cryptocurrency market.
According to data from the Santiment on chain analysis platform, the network cost of Ethereum has dropped to its historical lowest level in 2023. As of now, the average cost per transaction is only about $1.15. This is in stark contrast to the soaring high transaction fees of the past two years, when the average cost exceeded $50.
From historical data, the significant decrease in costs is a positive signal for the practical application and widespread adoption of Ethereum. Low cost makes using Ethereum networks more profitable and attractive. In addition, due to the reduced transaction costs of Ethereum, its practical use and practicality are also constantly improving.
The impact of this development may extend to the overall market value of the digital asset market. The practical application and widespread adoption of improvements can help boost the market value and value of Ethereum, thereby affecting the entire cryptocurrency market. This trend has brought positive prospects to the cryptocurrency market and also sparked market attention and expectations.
Impact on ETH prices
In fact, a significant decrease in network costs is beneficial for Ethereum and its users, especially as it can improve other network indicators and parameters. However, this development has not had a significant impact on ETH prices, as under the current selling pressure, ETH seems to be working hard to get out of the predicament.
As of Thursday, September 21st, cryptocurrency has fallen below the psychological threshold of $1600 for the second time this month. The trading price of Ethereum continues to be below this level, with a decrease of approximately 2.6% over the past three days.
Investors will focus on whether Ethereum can establish a positive network momentum at lower costs. However, it remains to be seen whether this is enough to drive ETH prices out of consolidation, especially in the absence of any signs of purchasing pressure from Ethereum Whales.
In addition, the decrease in the number of major ETH holders has also led to zero optimism in this situation. Because the decrease in whale holdings will make ETH prices increasingly vulnerable to downward pressure.
According to CoinGecko's data, the trading price of Ethereum is $1593, which has fallen 2.6% in the past week. Ethereum is currently the second largest cryptocurrency with a market value of $191.6 billion.
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