Gas Fees on Ethereum Network Drop to Six-Month Low
Gas fees on the Ethereum network have dropped to a six-month low, sparking excitement among traders and analysts alike. The average cost per transaction now stands at $1.12, the lowest figure seen since October 18. This significant decrease in gas fees has been attributed to the recent Dencun upgrade and a general slowdown in the broader crypto market.
Analysts from Santiment have noted that this drop in gas fees could potentially signal the beginning of an upcoming altcoin rally. Traders often cycle between periods of extreme optimism and pessimism, with transaction fees reflecting these fluctuations. Typically, fees peak during market highs and return to normal levels during market lows.
Just a few months ago, gas fees on the Ethereum network soared to an eight-month high in February, reaching an average of 70 gwei per transaction. This increase coincided with a surge in interest surrounding the ERC-404 token standard. However, the recent drop in gas fees has brought relief to Ethereum users, with costs now at a more manageable level.
Despite the decrease in on-chain activity, the circulating supply of ETH has surged to its highest point in the past month. Over the last 30 days, 74,458 new ETH were issued, while only 57,516 were burned, resulting in a net supply increase of 16,979 tokens. This shift marks a departure from the consistent deflationary trends seen in the previous five months.
In addition to these developments, asset manager Franklin Templeton has listed its spot Ethereum exchange-traded fund (ETF) on the Depository Trust and Clearing Corporation (DTCC) website. This move has reignited optimism among investors, who are eagerly awaiting a potential approval of an Ethereum ETF by the SEC, with expectations for a decision in May.
Overall, the recent drop in gas fees on the Ethereum network, coupled with the increase in circulating supply and the listing of an Ethereum ETF, has created a buzz in the crypto community. Traders and investors are now closely monitoring the market for signs of a potential altcoin rally in the near future.
