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2 min read

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Sep 25

Exploring the Impact of Low Ethereum Network Fees on Users and Decentralized Applications

Santiment’s report states that Ethereum transaction fees in 2023 have reached a yearly low, with an average of $1.15. This notable decrease in fees indicates improved usability of the network.

The affordability of Ethereum has made it increasingly popular among users, potentially leading to an increase in its market value. Recent data shows a significant rise in on-chain Ethereum transactions, reaching a near-record of 1,089,893 User Active Wallets (UAW).

Amidst the volatility experienced by other cryptocurrencies and decentralized networks, Ethereum stands resolute, maintaining a robust value above $1,500.

In a display of its immense potential, analysts predicted back in June that Ethereum could achieve an unprecedented milestone of $3,000. This optimistic outlook was fueled by the decreasing reserves of Ethereum on exchanges, currently standing at a meager 12.6%. Such scarcity further adds to the allure and strength of Ethereum in the market.

The ethereum founder, “Vitalik Buterin,” wants to implement two core tenets, which are: privacy and decentralization, making the decentralized network efficient and also providing sustainability.

Whether or not Ethereum network fees remain low in the future will depend on a number of factors, including the adoption rate of the network, the types of applications being built on Ethereum, and the scalability solutions that are implemented. Though the market has dipped to $1,593 — a 2.7% drop over a week — it still remains one of the best cryptos to invest on out there.

It is possible that Ethereum network fees will remain low due to the current market downturn. However, as Ethereum becomes more popular and more complex applications are built on the network, it is also likely that network fees will increase again. The current relative strength index for the network (ETH) suggests a potential solution backed by strong support of $1500.

Lower network fees could make Ethereum more accessible and affordable for a wider range of users, developers, and investors. This could lead to increased adoption, innovation, and investment in the network.

However, it is important to be aware of the potential drawbacks of low fees, such as reduced security and scalability challenges. It will be important for the Ethereum community to address these challenges in order to ensure that the network can continue to grow and thrive in the long term.