Ethereum (CRYPTO: ETH) was trading at $2,567 at the time of writing, nearing its all-time high of $2,615 recorded on April 22.
What Happened: As the second-largest cryptocurrency by market cap continued to trade higher, gas fees on the network dropped to a three-month low, according to data from Santiment.
Analysts at Santiment pointed out that gas fees were back at the sub $10 level, recording an average level of $8.14.
“This is obviously encouraging, with $ETH holders being able to confidently move their holdings without fear of such heavy incurred costs,” they wrote on Twitter.
Why It Matters: Expensive gas fees on the network have led to other blockchains, like Binance Smart Chain, becoming popular alternatives to the Ethereum network for daily transactions.
With that being said, the majority of DeFi related development remains tied to the Ethereum blockchain, and holders made use of the opportunity to move their tokens across the ecosystem.
However, Peter Chan of OneBit Quant told Coindesk that the improvement in fees was actually a result of traders building “bots” by collaborating with Ethereum miners.