Fees on the Ethereum network fell by almost 70% in a month

In early May, the average fees on the Ethereum network exceeded $14. The increase in fees was caused by a surge in ETH address activity.

According to EtherScan, the average daily number of transactions on Ethereum reached 1.19 million in the middle of last month. By the end of May, it fell below 1 million. Due to weakening demand for sending funds, network fees fell by 69% to $4.2, according to a report from Santiment .

The underlying asset Ethereum (ETH) briefly broke above $2,000 in early May. It was at this moment that transaction fees skyrocketed against the backdrop of increased investor activity.

By the end of the month, along with the decline in network performance, Ethereum began to lose value. On the night of Friday, June 2, the altcoin fell to $1870.

However, in the long term, the bullish scenario remains dominant. Analysts pointed to the ongoing outflow of ether from crypto exchanges.

As of June 1, only 9.9% of the total ETH supply was stored on trading floors. The reduction in the volume of cryptocurrency on exchange wallets helps to ease the pressure on the asset from investors who are ready to sell.

Therefore, Santiment predicts that in the coming weeks, Ethereum should level out losses and exceed $1,900 or even reach $2,000.