Gas fees on the Ethereum network have dropped to a six-month low, and on-chain analytics firm Santiment believes this could be a sign of an upcoming altcoin bull run.

Saintly

Santiment tweeted on April 28 that the average fee for Ethereum transactions has plummeted to $1.12, and traders' emotional cycles tend to switch between "xxx To the Moon" and "Cryptocurrency is dead". It can be observed through on-chain fees.

Santiment explained that on-chain fees tend to peak around the top of the market and fall back to the lows of the "rest zone" near the bottom of the market.

Since February this year, due to price increases and the rise of the new experimental token standard ERC-404, Ethereum Gas fees have reached an eight-month high; in the past six weeks, the market has been mainly in a correction state, and transaction fees have also dropped to The low point means that the decline of ETH and altcoins may reverse faster than expected.

#Ethereum's average fee level has dipped to just $1.12 per network transaction, the lowest average cost in a day since October 18th.

Traders historically move between sentimental cycles of feeling that#cryptois going "To the Moon" or feeling that "It Is Dead", which can… pic.twitter.com/8b8rLMLyIf

— Santiment (@santimentfeed) April 28, 2024

ETH trading fees start rally after record low

Santiment noted that Ethereum’s single transaction fee on April 27 was $1.12, a new low since October 18 last year.

At that time, ETH was only $1,563. After starting the rally, it reached $4,092 on March 12 this year.

ETH/USDT Daily Line｜OKX

However, the cooling of on-chain activity has also caused ETH supply to surge to its highest point in nearly a month.

Ultrasound.money data shows that a total of 74,486 ETH were issued in the past 30 days, and only 56,947 were destroyed, ending the past five consecutive months of deflation.

However, since the ETH merger, Ethereum has still destroyed a total of -437,079.12 ETH, with a deflation rate of -0.224%.

This article Ethereum transaction fees have returned to a new low last year, and analysts: Will restart the bull market for alternative currencies. First appeared on Chain News ABMedia.