Ethereum Hits 2M Daily Transactions with Record Low Fees

The Ethereum network is known for its congestion and extremely high fees. This trend may however be coming to an end for the network. It has reached a landmark with over 2 million daily transactions and fees averaging 17 cents.

According to the data from Etherscan, the blockchain explorer for the network, Ethereum attained 2.2 million daily transactions on Monday 29 December at such negligible fees. This is a key milestone in the history of Ethereum, suggesting that the era of exorbitant transaction fees and network congestion may be ending.

Ethereum Becoming Competitive Again

The Ethereum network was the second to be established after Bitcoin, and it naturally became the second largest network. This growth however came at a cost – the network suffered from congestion and scalability issues leading to high fees. As a result, developers and other users started migrating to faster and cheaper alternatives like Solana or other Layer 2 networks on Ethereum.

No wonder, Solana surpassed ethereum in annual onchain revenue for the first time this year due to the migrations. But thanks to the recent Pectra and Fusaka upgrades, the network is picking up in scalability and fees have seen a drastic drop, with a staking queue flipping net-positive for the first time in six months.

Some Ethereum users anticipated this drop, predicting that the price of Solana’s token, SOL, was bound to crash to $26 as the fees slid down a steep slope. As Ethereum maintains a reputation of high security and exceptional developer support, more users will likely return to the network as fees, which have been a major turnoff become a non-issue. 

It is however too early to conclude that the fee drop has come to stay, since Ethereum has battled this issue for almost all the years of its existence. However if the solution is permanent, Ethereum could be on its way to greater days.

Ethereum Continues to Struggle despite User Growth

The decline in fees is great news and the growth in the number of users and transactions as shown in its active addresses is also commendable. However, Ethereum continues to struggle in its price despite all of these magnificent happenings on its network.

One of several analysts has warned that the coin could be heading to lower levels as the price has stagnated for some time now, causing the weakening of its momentum. As a result, Ethereum has failed to hold above the critical $3,000 price it needs to secure an upward trend.

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