Ethereum Fees Drop to Record Low as U.S. Demand for ETH Declines
Transaction fees on the Ethereum blockchain have fallen to nearly a historical low of just 0.16 gwei, or $0.01 per transaction. Meanwhile, the number of transactions this week has risen to 1.6 million.
Experts attribute the decline in fees to lower demand for Ethereum among U.S. investors. The Coinbase Premium indicator also suggests that market participants are showing diminishing interest in ETH. This indicator measures the difference between the altcoin’s price on Coinbase and the global average. It has dropped close to zero, signaling a decrease in domestic buying demand.
Similarly, the six-month CME futures basis for ETH has fallen to around 3%, marking a three-month low. This reflects that institutional investors are less willing to pay a premium for leveraged positions.
However, the situation may change, as November has historically been a favorable month for Ethereum. On average, during the last month of autumn, ETH gains 6.93%, and its 47.4% rise in 2024 stands as one of the strongest performances in history. As a result, analysts express cautious optimism about the crypto asset’s near-term outlook.
Whales are also showing bullish sentiment toward Ethereum by continuing to accumulate it. According to Santiment, in October, wallets holding between 1,000 and 100,000 ETH increased their balances from 99.28 million to 100.92 million ETH, continuing to buy even after a 7% monthly price decline.
See also: "Bitcoin Price Today: Stalls at $110K with October Losses"
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