Gas On Empty: Ethereum Fees Fall To 2019 Levels—Details

Christian Encila

2 months ago

3 mins read

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Ethereum transaction costs have fallen to their lowest point in five years. The drop comes as users pull back from the network amid economic concerns, according to data from Santiment, an on-chain analytics platform.

Ethereum Transaction Costs Plummet To Just 17 Cents

The average fee to process a transaction on Ethereum now stands at approximately $0.168. This steep decline matches a pattern of reduced activity, with fewer people sending Ether or using smart contracts on the blockchain. Brian Quinlivan, marketing director at Santiment, explained the situation in an April 17 blog post.

Market Uncertainty Keeps Traders On Sidelines

According to Quinlivan, low network fees often appear before price rebounds. However, many traders seem to be waiting for global economic questions to clear up before they return to their normal trading patterns.

🚨💸 BREAKING: Ethereum fees are at a 5-year low, with transactions currently costing just $0.168. This is the cheapest daily cost of making $ETH transfers since May 2, 2020. We briefly break this down in our latest insight. 👇https://t.co/fg5CfRgsHn pic.twitter.com/QlLwyzdm1F

— Santiment (@santimentfeed) April 16, 2025

Hesitation continues after market worries that had started from April 2 with US President Trump announcing sweeping tariffs. Traditional markets turned out to be hit alongside cryptocurrency, where most assets languish below pre-announcement values.

Pectra Upgrade Set For Launch On May 7

Despite this market crisis, Ethereum development is on the move. Pectra is finally scheduled to go live on May 7 after some delays owing to the configuration hiccups as well as an unknown attacker causing problems during the testnet trials.

The first part of Pectra will bring numerous enhancements to the network such as an increase to layer-2 blob capacity from three to six, transaction fee reduction, alleviation of network congestion, and also allow users to pay fees with stablecoins like USDC and DAI. The upgrade will also increase the maximum staking limit from 32 ETH to a much larger 2,048 ETH.

ETH is currently trading at $1,593. Chart: TradingView

A second phase planned for late 2025 or early 2026 will add new data structures for better storage efficiency. It will also create a system that helps nodes verify transaction data without storing the entire dataset.

Long-Term Holders Begin Selling Positions

Meanwhile, data from Lookonchain shows that long-term Ethereum holders are now selling their positions, even after holding through previous market cycles. These sales are happening in the $1,500 to $1,700 price range.

After holding $ETH for 11 months, this guy capitulated and sold all 1,160 $ETH($1.83M) at a loss of $2.6M(-58.6%)!

11 months ago, he withdrew 1,160 $ETH($4.43M) from #OKX at $3,816, and deposited it to #OKX at $1,580 ~30 minutes ago, losing $2.6M(-58.6%).… pic.twitter.com/Cl0ebXie1f

— Lookonchain (@lookonchain) April 16, 2025

The selling activity has created mixed signals for market watchers. Some analysts view this as a warning sign of a potential sell-off ahead. Others believe it could lead to market stabilization.

This selling comes at an interesting time, with network usage at multi-year lows but major technical upgrades on the horizon. Based on Quinlivan’s assessment, reduced retail interest combined with ongoing development could create conditions for “an eventual surprise rebound with little resistance.”

Ethereum price has dipped by more than 11% over the last two weeks. Based on figures from CoinMarketCap, this cryptocurrency is now trading just below $1,600. The price has remained unchanged over the last 24 hours.

Featured image from Capital One, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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