Ethereum blockchain fees have declined along with the influx of deposits to crypto exchanges. This pattern was found by analysts of the Santiment service. When the ether (ETH) rate went down, the volume of deposits on exchanges also began to decline.
According to analysts, this dynamic has eased the selling pressure on ETH. ETH sales reached their maximum on May 28, when the volume of deposits amounted to 228,000 ETH. Activity on the ETH network is still high compared to the beginning of the year, but every day fewer addresses are moving cryptocurrency to exchanges.
Social volumes are also falling. For example, ether mentions on social media dropped to February values. It seems that the excitement achieved in early May has begun to fade.
At the same time, the indicator of market value to realized (MVRV) and completely dropped to negative values. This means that long-term ETH hodlers are ready to take profits, fueling a bearish scenario.
According to Santiment, the drop in fees can also be explained by the fact that ETH holders are looking for an opportunity to conduct transactions outside the network. Strong competitors have already appeared on the market in the face of Polygon. Also, a large amount of money migrated to the Binance Smart Chain, where fees are significantly lower compared to Ethereum.
Given the fall in social activity, the Ethereum network is returning to normal in the short term, analysts concluded. We will remind, earlier in Santiment stated that in order to continue the growth of the price of ETH, the community must moderate the excitement. The price of ETH at the time of writing is $ 2805. The average commission on the Ethereum network dropped from $ 39.6 to $ 6.
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