Bitcoin and Ether transaction fees have declined to their lowest levels in several months as the crypto market experienced one of its bloodiest weeks of 2024.
On June 23, the average Bitcoin transaction fee reached $1.93 per transaction, its lowest level since October 2023. The low fees on the Bitcoin network are a sign of lower network activity and less competition.
The transaction fees on the Bitcoin network often soar during times of high market volatility, especially when prices appreciate. The increased price speculation generates growing competition for block space.
As a result, every major bullish period since 2012 has resulted in a corresponding increase in fees except for the 2021 bull run, when the Bitcoin (BTC) price touched $69,000, but the transaction fees remained relatively low.
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ETH gas fee nears historical lows
On the other hand, Ether (ETH) gas fees have also reached a new low, with gas prices reaching as low as 1 gwei, which is the lowest in years. The current gas fee on the Ethereum network is about 4.5 gwei.
Gwei is a denomination of the Ether and is used on the Ethereum network to buy and sell goods and services. One gwei is one-billionth of one ETH.
The low gas fee on Ethereum is attributed to activity moving away from Ethereum’s base layer to its layer-2 network after the March Dencun upgrade.
Since the Dencun upgrade, average gas prices on Ethereum have decreased by about 92%. According to a report from Layer2 Insider, the layer-2 networks pocketed $950,000 in the last week.
Crypto market mayhem
The low transaction fees on the top two cryptocurrency networks come at a time when the crypto market is going through one of the worst weeks in 2024. Bitcoin price slumped below $63,000 price support while several altcoins bled in double digits.
The crypto market has seen a significant rise throughout the last six months, with top cryptocurrencies such as Bitcoin and a few altcoins hitting a new time high.
However, over the past couple of weeks, the bears have been in command, liquidating billions from the leveraged market while spot holders have also incurred heavy losses.
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