Ethereum has emerged as the best-performing cryptocurrency over the past week, with its price rising more than 6% to above $3,300..
Notably, the price increase coincided with a significant drop in transaction fees, which reached their lowest level in the past six months, according to a report by blockchain analytics firm Santiment.
Ethereum gas prices hit the lowest in six months
Ethereum's average transaction fee is approximately $1.12, marking the lowest daily average cost since October 18, 2023. The introduction of the Dencun upgrade and widespread crypto market stagnation has reduced on-chain activity and lowered Ethereum gas fees.
This decline follows a peak of $15.21 in March, when Ethereum saw strong price performance and increased demand.
“Traders have historically oscillated between sentimental cycles of feeling like cryptocurrencies are “going to the moon” and feeling like they’re “over it,” which can be observed through trading fees. These fees tend to peak (and sometimes diverge) near price highs and return to stasis near price troughs. ” explained.
Nevertheless, Santiment predicted that current gasoline prices are attractive for traders and could bring the market out of its current stagnation. This development could help push Ethereum and altcoins higher again.
Read more: Ethereum (ETH) Price Prediction 2024 / 2025 / 2030
Meanwhile, ConsenSys' efforts to resolve Ethereum's regulatory issues are sparking optimism. The company has launched a lawsuit with the U.S. Securities and Exchange Commission (SEC).
ConsenSys argued that the SEC's attempt to classify Ethereum as a security is a regulatory overreach. It added that such classification would hinder innovation and negatively impact developers, investors, and large institutions leveraging Ethereum's decentralized framework.
“Ethereum will survive regardless. It doesn’t depend on any particular country or any particular group of people. But if the SEC has its way and declares Ethereum a security, it won’t be able to be sold, so the impact on the U.S. is devastating. In most cases, people won't be able to buy it in the US,” a ConsenSys spokesperson told BeInCrypto.
Read more: 4 reasons why Ethereum is not a security: Consensys
In addition, asset manager Franklin Templeton posted a physical Ethereum exchange-traded fund (ETF) on the website of the Deposit Trust Clearing Corporation (DTCC), which became a hot topic. This development for ETFs has renewed investor expectations that the SEC may approve an Ethereum ETF in May.
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