Cryptocurrency analytics firm Santiment believes that Ethereum (ETH) and altcoins associated with top smart contract platforms will alienate many traders.
Santiment said he is keeping a close eye on Ethereum’s average transaction fees, which have plummeted to their lowest level since October 18, 2023.
According to the analytics firm, falling gas prices are a sure sign that Ethereum is bottoming.
“Ethereum’s average fee level was just $1.12 per network transaction, the lowest average daily cost since October 18.
Traders historically move between sentimental cycles where they feel a cryptocurrency is ‘reaching the moon’ and sentimental cycles where they feel ‘it’s dead’, which can be observed through trading fees. These fees tend to peak (sometimes diverge) near price peaks, and then go dormant near price troughs.
“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.”
As of this writing, Ethereum is trading at $3,218, up more than 13% from its April low of $2,832.
Looking at altcoins operating in the Ethereum ecosystem, Santiment points out that two coins are already showing signs of strength.
“Liquid staking assets benefited from a nice mini run this weekend. Among the 17 leading assets we track for this sector, market capitalization increased a combined +5.0% despite choppy market conditions. LDO (+5.2%) and RETH (+5.9%) lead the way.”
As of this writing, Lido DAO (LDO) is trading at $2.15 and Rocket Pool ETH (RETH) is worth $3,547.
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