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Ethereum: Transaction costs reach lowest point since 2020

The 7-day average of transaction costs on Ethereum declined on Feb.

By Mike Hesp
• 2 min read
Ethereum: Transaction costs reach lowest point since 2020

The 7-day average of transaction costs on Ethereum declined on Feb. 15 to $0.77, down 70% from the previous week. Indeed, a week earlier, this cost stood at $2.57, dropping to its lowest level since July 2020.

Bitcoin's network activity also recently hit a 12-month low. On the oldest blockchain, transactions fell 55% from their peak.

Median gasfees on Ethereum further confirm this trend. Last week, the daily median fee was 1.61 Gwei, with a low on Feb. 15 of 1.19 Gwei, the lowest since January 2020.

While low costs may stimulate user activity, the continued decline is causing growing concerns among ETH investors, given the continued lack of demand.

Ethereum's 7-day average on-chain volume fell to just $4.19 billion on Saturday, down 46% from the previous week. This is the lowest daily volume for Ethereum since Nov. 7.

The statistics speak clear language regarding the use of the Layer-1 blockchain. However, Ethereum's biggest competitor, Solana, is also under heavy criticism due to a series of negative headlines and has suffered significant losses as a result. Some even fear the end of the platform that was so praised until recently.

Crypto enthusiasts thus find themselves, exaggeratedly, in the following difficult position: do you choose the blockchain with no users (Ethereum) or the one with criminal users (Solana)?

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