ETH Fees Fall to $5 Amid Decreasing Network Activity

The activity on the Ethereum network last week reached its highest level since February 20. The average daily number of transactions on the blockchain exceeded 1.342 million.

However, the network activity began to decline as early as May 14. According to BitinfoCharts, the average daily number of transactions on the ETH blockchain collapsed to 1.089 million earlier this week.

A sharp weakening in demand for sending funds led to a drop in transaction fees. Fees fell to $5 on May 16, its lowest level since July 2021.

The network’s underlying asset, Ether, started the new week with a slight correction, but it is still trading above $2,000.

Trader Ali Martinez estimates ETH is unlikely to break above $2,200 in the coming days.