Ethereum fees have reached their lowest level in five years due to a decrease in user activity on the blockchain, according to the analytics platform Santiment. The average fee per transaction has dropped to approximately $0.168, attributed to fewer users sending Ether and utilizing smart contracts. In a blog post, Santiment's marketing director Brian Quinlivan explained that when more users are active, transaction costs rise as they bid higher fees for faster confirmations. Conversely, with fewer transactions currently, lower bids result in reduced average fees. Despite this reduction, Ether has seen a decline of over 12.5% in the past 14 days, trading slightly under $1,600. Quinlivan noted that traders are waiting for a potential price rebound before increasing their transaction frequency. The upcoming Pectra upgrade, set for May 7, aims to enhance network capacity and reduce fees, while the second phase, expected in late 2025 or early 2026, will further improve data storage and scalability efficiency on the Ethereum network.

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