As a crypto investor, I’ve noticed an interesting development in the Ethereum network lately. Gas fees have dropped to their lowest point in six months, despite Ether (ETH) experiencing a slight rally over the weekend. According to Santiment, this trend could be a sign of an upcoming altcoin rally.
The cost of gas transactions on the Ethereum blockchain has dropped to its lowest point in half a year, coinciding with a slight increase in Ether’s (ETH) value during the weekend. According to analysts at crypto analysis firm Santiment, this potential price correlation might be an indicator of an upcoming surge in the altcoin market.
On the 27th of April, the mean transaction fee for Ethereum reached a low of $1.12, based on information from Santiment’s April 28th post.
Traders have a tendency to shift between optimistic and pessimistic attitudes towards cryptocurrencies, as evidenced by transaction fees. This cycle of sentimentally believing crypto will reach new heights or is doomed can be historically observed. (Santiment)
As a crypto investor, I’ve learned from Santiment’s analysis that network fees often spike near market peaks before returning to their normal, lower levels during market downturns.
In February this year, Ethereum gas fees peaked at an eight-month high due to heightened demand for the innovative ERC-404 token standard, which has recently attracted significant attention.
The analytics tool implied that the current low gas fees on the Ethereum network might signal an upcoming surge in activity, potentially marking the start of an altcoin price rally.
“With markets mainly retracing over the past 6 weeks, the lack of demand and strain on the network may help turn ETH and associated altcoins around sooner than many may expect.”
The cost of Ether increased by 4.3% over the past week according to CoinGecko’s latest figures.
On April 27th, among the top 50 cryptocurrencies ranked by market capitalization, Optimism (OP), Arbitrum (ARB), and Polygon (MATIC) from Ethereum’s layer-2 networks recorded three of the most impressive daily gains. Specifically, Optimism grew by 11.7%, Arbitrum increased by 3.5%, while Polygon registered a gain of 2.8%.
Currently, Ethereum‘s network activity is at a minimum, resulting in an increase in the amount of Ethereum in circulation, reaching its peak level in the past month.
Over the past month, there was an issuance of approximately 74,458 fresh Ether units, while only about 57,516 Ethereum tokens were destroyed. Consequently, the total Ether supply grew by around 16,979 new units based on the information provided by ultrasound.money.
In sharp contrast to the previous five months marked by consistent deflation, the recent development has brought about an increase in ETH inflation. However, since the Ethereum network transitioned to a proof of stake consensus mechanism called ‘The Merge’, which took place on September 15, 2022, over 437,000 ETH have been destroyed.
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2024-04-29 04:57