Ethereum L1 transactions hit 2.2M a day; each costs about 17 cents

💡 DMK Insight

Ethereum’s transaction fees have plummeted from their May 2022 highs, and here’s why that matters: With current fees significantly lower, now’s a prime time for traders to consider increasing their activity on the Ethereum network. Lower transaction costs can lead to higher trading volumes, which often results in increased volatility—something day traders thrive on. This shift could also attract new retail investors who were previously deterred by high fees, potentially driving up demand for ETH. Keep an eye on the $3,000 resistance level; a sustained break above could signal a bullish trend. However, it’s worth noting that while lower fees are enticing, they could also indicate reduced network congestion. This might suggest a lack of significant market interest or activity, which could lead to price stagnation. So, while the cost of transactions is down, traders should monitor overall trading volume and sentiment closely. Watch for any spikes in activity that could indicate a shift in market dynamics.