A prominent market intelligence firm says that Ethereum’s (ETH) gas fees have dropped to levels not seen since the crypto markets collapsed in May of 2021.
In a new report, Santiment says that the depressed gas fees on Ethereum suggests that interest in using the leading smart contract platform have significantly declined.
“Ethereum fees are so low [in the] 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.”
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The crypto analytics firm is also looking at Dai (DAI), a stablecoin built on the Ethereum blockchain. According to Santiment, DAI’s money velocity supports the notion that market participants currently have very little interest in using the second-largest crypto asset by market cap.
“It looks like velocity (a measure of how quickly money is circulating in the crypto economy) has always [increased] when we went to the top. Quite low now. What these two charts [are] showing together is hibernation. It happens typically in winter. Bears sleeping in winter. Waiting for a trigger…”
The crypto insights firm says that Dai’s money velocity and Ethereum’s extremely low gas fees are hinting at “stagnancy” and “fear” among market participants.
Ethereum is changing hands at $1,796 at time of writing, a 13% drop from its seven-day peak of $2,070.
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The post Ethereum Gas Fees Dropping to Extremely Low Levels, According to Analytics Firm – Here’s What It Means appeared first on The Daily Hodl.
