Published on mei 1, 2024, 12:53 am
Image source: Fox News
```json { "TLDR": "Ethereum's gas fees hit a six-month low, indicating a potential rally for altcoins. Santiment analysts suggest fee drops may forecast increased altcoin activity as Ethereum network sees lower fees and Ether price rise, coinciding with promising performances from layer-2 networks. Despite an increase in ETH supply, recent burn rates and transition to proof-of-stake signal optimistic times for altcoins." } ```
The Ethereum network recently experienced its most cost-effective day in over six months, suggesting a potential upcoming rally for altcoins. Gas fees on the Ethereum platform hit a six-month low despite Ether’s price showing a slight increase during the weekend. This development has caught the attention of analysts at Santiment, a crypto analytics platform, who believe that this drop in fees could signal a forthcoming surge in altcoin activity.
According to Santiment, traders tend to oscillate between bullish and bearish sentiments reflected through transaction fees, indicating market cycles. The platform noted that fee spikes usually coincide with market peaks and then decrease to lower levels around market bottoms. In February, Ethereum gas fees reached an eight-month high amid significant interest in the ERC-404 token standard.
The significant drop in gas fees could potentially hint at increased network activity on Ethereum, potentially signaling the onset of an altcoin upswing. As Ether’s price climbed by 4.3% over the last week, coinciding with notable performances from native tokens of layer-2 networks Optimism, Arbitrum, and Polygon.
Despite these positive movements, Ethereum’s circulating supply has seen a recent surge to its highest level in the past month. Approximately 74,458 new ETH were issued while only 57,516 were burned in the last 30 days—resulting in a net supply increase of 16,979 new Ether. This contrasts sharply with previous months that witnessed consistent deflation.
Even though there has been a recent uptick in ETH inflation, more than 437,000 ETH have been burned since the network transitioned to a proof-of-stake consensus mechanism known as “the Merge” on September 15, 2022. These developments suggest exciting times ahead for altcoins and mark a significant juncture for cryptocurrency enthusiasts following these trends closely.
Original article posted by Fox News
