The transaction fee of the Ethereum network has dropped 70% month-on-month, hitting a new low since July 2020

The 7-day moving average transaction fee of the Ethereum network dropped to $0.77 on February 15th. Just a week ago, this figure was $2.57, with transaction fees decreasing by 70% in comparison. Although a decrease in transaction fees usually promotes user activity, the extent of this significant decline, especially the long-term downward trend, suggests that it is more due to weak demand. This drop has brought the transaction cost down to its lowest level in four years when priced in dollars. The last time transactions were so cheap on Ethereum dates back to July 2020. Meanwhile, recent activity on the Bitcoin network has fallen to its lowest point in twelve months, with trading volume dropping by 55% from its peak.