As a researcher with extensive experience in the cryptocurrency market and specifically Ethereum, I find the recent drop in gas fees on the Ethereum network to be noteworthy. The average cost of $1.12 per transaction is the lowest figure since October 18, 2023, a significant decrease from the eight-month high seen in February.
The cost of gas fees on Ethereum‘s network has dipped to its cheapest level in the past six months, with an average of only $1.12 for each transaction. This is the smallest amount spent since October 18th.
According to Santiment’s analysts, the decrease in gas fees might signal the beginning of an impending rally for altcoins.
Ethereum Gas Fees Plummet
As a market analyst, I’ve observed that according to Santiment’s data, there are recurring patterns in trader behavior. During optimistic phases, there’s a widespread belief that a specific asset will experience significant growth, fueled by an exponential mindset. Conversely, during pessimistic periods, sentiment shifts towards the perception that the asset is on a downward trend.
The cost for an average Ethereum network transaction now stands at only $1.12, which is the lowest daily rate since October 18th.
Historically, the sentiment among crypto traders has swung between extremes, with some believing that cryptocurrencies are on the verge of dramatic price increases (“It’s going to the moon”) and others convinced that they have reached their end (“It’s dead”). These cycles can significantly impact market trends.
— Santiment (@santimentfeed) April 28, 2024
As a crypto investor, I’ve observed that changes in market sentiment have a significant impact on transaction fees. During periods of heightened excitement and buying frenzy, when the market is near its peak, transaction fees tend to rise dramatically. Conversely, during market downturns and times of uncertainty, transaction fees usually drop back to more reasonable levels.
The decline in Ethereum gas fees lately is due to the Ethereum Improvement Proposal 1559 (EIP-1559), known as “London Hard Fork,” and a less active crypto market in general. These factors have resulted in decreased on-chain transactions, leading to lower Ethereum gas fees.
As a crypto investor, I’ve noticed a significant change in the Ethereum network’s gas fees compared to just a few months ago. In February, gas fees hit an eight-month high. Interestingly enough, this surge in fees came at a time when there was a great deal of buzz surrounding an experimental token standard called ERC-404.
On February 9, the average gas price reached a high of 70 gwei or around $60 for a typical transaction. This marked a significant increase, with gas costs soaring to as much as 377 gwei – a figure last seen on May 12, 2023.
Over the past week, Ethereum’s price has experienced a small surge, increasing by 4.3%, based on CoinGecko’s data. However, in a recent development, ETH has suffered a 4% drop, resulting in the loss of last week’s gains and bringing its current value around $3,200.
Ethereum’s Circulating Supply Surges
Currently, Ethereum network activity is down, resulting in a rise in the number of Ethereum tokens in circulation, which has reached its peak level in the last month.
Over the past thirty days, there was an issuance of approximately 74,458 fresh ETH tokens, whereas only about 57,516 Ethereum tokens were destroyed through burning. This situation led to a growth in the total supply by nearly 16,979 new tokens. A contrast to the previous five-month period during which deflationary tendencies were prevalent and consistent.
As an analyst, I have observed an uptick in inflation based on Ethereum (ETH) recently. However, it is important to note that since the switch to Proof of Stake (PoS) consensus mechanism in September 2022, over 437,000 ETH tokens have been burned within the network.
Recently, Franklin Templeton generated buzz by adding its Ethereum exchange-traded fund (ETF), which is specifically for Ether spots, to the DTCC’s (Depository Trust and Clearing Corporation) listing.
The renewed progress in this project has rekindled investors’ hopes that the Securities and Exchange Commission (SEC) will approve an Ethereum exchange-traded fund (ETF), with many anticipating a decision from the regulatory body as early as May.
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2024-04-29 15:49