Ethereum Future Seems Uncertain As Network’s Average Fee Falls To $0.88
Ethereum’s average network cost increased when the price fell below the $0.9 mark, which most users had anticipated to hold. The declining average price can be a concerning indication of the network’s and the industry’s overall health.
In addition to the steep decline in ETH’s value, which has fallen by more than 70% since the ATH was reached back in November, the network’s usage has also drastically decreased. The network had a significant outflow of money as a result of the value’s sharp decline.
Ethereum prices are falling
ETH prices are falling, and projects using the network as a foundation are seeing a sharp decline in revenue. One of the primary sources of ETH fees and revenue, the DeFi sector, had a sharp decline in the most recent quarter as the TVL on ETH fell from $153 billion to $47 billion.
Around July 2020, when the price of the second-largest cryptocurrency on the market had been fluctuating in the $450 region, the average fee of ETH was last seen at roughly $0.9.
The network’s revenue would suffer greatly from the projected reduction below $500, pushing the average cost even lower. This might lead to a further decline in Ethereum usage and present a new challenge for the protocols already in place.
Regarding Ethereum’s market value, the second-largest cryptocurrency is presently attempting to establish a foothold above $1,200, which, if it succeeds, will make ETH’s recovery run a possibility if the market experiences an increase in inflows.
The Fidelity expert previously informed his followers that both Bitcoin and Ethereum are significantly undervalued and are nearing the bottom of the drop, which is supported by technical indicators like the Relative Strength Index and others.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews