According to a leading market intelligence firm, Ethereum’s (ETH) gas fees have plunged to levels not seen since the crypto markets crashed in May 2021.
In a new report by Santiment, the low gas fees on Ethereum indicate that interest in using the dominant smart contract platform has considerably decreased.
“Ethereum fees are so low last days. We could even notice they’ve been that low before previous bottoms. Low fees mean very little activity, no one is interested to do anything.”
Dai (DAI), a stablecoin built on the Ethereum network, is also being considered by the crypto analytics business. According to Santiment, DAI’s money velocity supports the concept that market players have little interest in using the second-largest crypto asset by market cap right now.
“It looks like velocity (a measure of how quickly money is circulating in the crypto economy) has always decreased when we went to the top. Quite low now. What are these two charts showing together is hibernation. It happens typically in winter. Bears sleeping in winter. Waiting for a trigger…”
According to the crypto analytics organization, Dai’s money velocity and Ethereum’s extremely low gas fees indicate “stagnancy” and “fear” among market participants.
Ethereum is changing hands at $1,890 at the time of writing, an 8.7% drop from its seven-day peak of $2,070, according to CoinCu data.
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