According to analyst firm Santiment, after the price of ETH fell relative to its all-time high, the commission on the Ethereum network approached a 2-year low.
At present, the commission of ETH has dropped to an average of $0.88 per transaction, the last time it went below $0.90 in July 2020. The drop in commissions can be attributed to a 70% drop in the price of ETH from its all-time high.
On the evening of July 10, the price of the main altcoin fell to $1,179, with a weekly trend of 9.5% at a market capitalization of $140 billion.
Lower transaction fees could be a good sign for the second-largest cryptocurrency by market capitalization, because it will stimulate network activity and help get out of the current bearish state.
In addition, blockchain is slowly approaching an update to The Merge, which will make it more scalable and reduce fees even further.