Analysts at analyst firm Santiment report that Ethereum (ETH) gas fees have fallen to levels not seen since the May 2021 collapse.
A new report from Santiment says that the decline in Ethereum gas fees means that interest in using the leading smart contract platform has declined significantly.
Ethereum fees have been so low in recent days. We could see that they were so low before the previous bottom. Low fees mean low activity, no one is interested in doing anything.
Analysts also turned their attention to the Dai (DAI) stabelcoin, built on the Ethereum blockchain. According to them, the speed at which DAI is circulating supports the view that market participants currently have little interest in using the second-largest crypto-asset by market capitalization.
It seems that velocity (a measure of how fast money circulates in the crypto-economy) has always increased as we rise to the top.
Right now, it’s quite low. What both charts display is a hibernation. It usually happens in the winter. Bears are sleeping in the winter. Waiting for a trigger…
A cryptocurrency analysis firm believes that the speed of DAI circulation and the extremely low gas charges in Ethereum indicate “stagnation” and “fear” among market participants.
On the evening of May 29, Ethereum was trading at $1,790 with a weekly loss of 9.5%.