Ethereum’s gas fees have plummeted to a six-month low, despite a slight weekend rise in Ether that suggested an altcoin upswing. Santiment says that this decline in fees, which came down to $1.12 on April 27, might be a sign of changes in market sentiment. In the past, high fees have corresponded with market peaks, while low fees have indicated market bottoms.
Ethereum’s circulating supply increased last month by 16,979 additional ETH, however this is in contrast to the prior deflationary trend. But since the network switched to proof of stake, more than 437,000 ETH have been burned.
Gas prices increased in February as a result of the demand for ERC-404 tokens. With the price of Ether having just increased, Santiment believes that increased Ethereum activity and an altcoin boom could result from the current cheap fees. Optimism, Arbitrum, and Polygon are examples of Layer-2 networks that have had favorable movements.
This change in network dynamics and gas prices highlights how the bitcoin trading environment is changing and suggests future market swings.
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