Transaction fees have been decreasing over the past few weeks against the backdrop of weakening activity on the Bitcoin and Ethereum networks.
According to BitInfoCharts, the average Bitcoin transaction fee has dropped to $1.59, while Ethereum fees have crashed to their lowest level since August last year at $10.27.
Fees are declining in spite of the strengthening of BTC and ETH prices. Some analysts have predicted that if their prices continue to climb in the coming days, then increased network activity will lead to a jump in commissions.
According to the latest report published by Arcane Research, Bitcoin fees have also been reduced due to the increased use of Segwit transactions.
A growth in the use of this solution has been observed since June 2021. Researchers believe Bitcoin fees could soar in the short term.