Analysts at cryptocurrency analytics platform Santiment said gas fees on the Ethereum network fell to their lowest in six months despite the price of Ethereum rising slightly over the weekend, which could foreshadow an upcoming altcoin rally. .
On April 27, the average Ethereum translation fee fell to $1.12. according to This is Santiment’s post from April 28th.
“Traders have historically swung between sentimental cycles where they feel a cryptocurrency is ‘reaching the moon’ and feeling like ‘it’s dead.’ This can be seen through trading fees,” Santiment wrote.
Santiment explained that fees tend to peak near local market highs and fall to a “resting state” low near market lows.
Ethereum’s gas fees hit an eight-month high in February amid surging interest in an experimental token standard called ERC-404.
The analytics platform suggested that lower gas fees could indicate an increase in Ethereum network activity in the future and herald the start of an altcoin rally.
“With the market largely recovering over the past six weeks, the lack of demand and strain on the network could help shift ETH and related altcoins sooner than many expect.”
This comes as the price of Ether (ETH) has rebounded slightly, rising 4.3% over the past week, according to CoinGecko data.
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As of April 27, the native tokens of the Ethereum layer 2 network Optimism, Arbitrum and Polygon accounted for three of the top five best-performing assets among the top 50 cryptocurrencies by market capitalization, accounting for 11.7%, 3.5% and 2.8% respectively. Got it.
Meanwhile, reduced network activity has caused Ethereum circulating supply to surge to its highest level in the last month.
According to data from Ultrasonic.money, 74,458 new ETH were minted in the last 30 days, while 57,516 ETH were burned, increasing the net supply by 16,979 new Ether (ETH).
This stands in stark contrast to the past five months, when steady deflation continued. Despite the recent rise in ETH inflation, over 437,000 ETH have been burned since the network switched to a proof-of-stake consensus mechanism called Merge, which occurred on September 15, 2022.
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