Even though Ethereum prices rose slightly over the weekend, gas prices on the Ethereum network have fallen significantly to their lowest levels in the past six months.
Analysts at cryptocurrency analysis platform Santiment suggest that this drop in gas prices could signal an upcoming altcoin rally.
according to Santiment's post about Xthe average fee for Ethereum transactions has dropped to $1.12.
The platform explained that trading fees follow cycles in investor sentiment, often swinging between extreme optimism and pessimism.
Gas prices fall at market bottom
Gas prices tend to peak during market tops and then decline to lower levels during market bottoms.
Earlier this year, Ethereum gas prices reached an eight-month high in February due to soaring interest rates. for Experimental ERC-404 token standard.
However, the current low gas prices indicate a potential increase in activity on the Ethereum network, which could lead to an increase in altcoins.
Santimento The recent market recovery, combined with reduced demand and strain on the network, suggests that the recovery for Ethereum and related altcoins may be faster than expected.
🤑 #Ethereum's average fee level has fallen to just $1.12 per network transaction, making it the lowest average daily cost since October 18th.
Traders historically move between emotional cycles of emotions such as: #cipher It's possible to “go to the moon” or feel “dead”… pic.twitter.com/8b8rLMlyIf
— Santiment (@santimentfeed) April 28, 2024
According to data from CoinGecko, Ether has gained 4.3% over the past week, supporting the idea that the price will rise slightly.
Additionally, on April 27th, Optimism (OP); Arbitrum (ARB) and Polygon were among the top five best-performing assets among the top 50 cryptocurrencies by market capitalization, posting gains of 11.7%, 3.5%, and 2.8%, respectively.
However, due to a decrease in network activity, the circulating supply of Ethereum has increased.
According to the Ultrasound report, 74,458 ETH were newly minted in the past month, but only 57,516 were burned, increasing the net supply by 16,979 ETH..money data.
This is in contrast to the previous five months, which saw steady deflation. It is worth noting that Evolution of Ethereum More than 437,000 ETH was burned through a proof-of-stake consensus mechanism known as the “merge” on September 15, 2022.
Ethereum expects $365 million in revenue in first quarter
ethereum network reported solid revenue of $365 million. In the first quarter of 2024, we achieved an impressive 155% year-over-year revenue growth.
As reported, Ethereum's first quarter revenue shows a staggering 200% increase compared to the $123 million profit recorded in the fourth quarter of 2023.
The main factors contributing to this significant growth were a surge in decentralized finance (DeFi) activity and increased network participation during the quarter.
Ethereum fee income generated through user transactions reached a remarkable milestone of $1.17 billion in the first quarter, an astonishing 155% increase compared to the same period in 2023 and compared to the previous quarter. recorded an 80% increase.
Ethereum's average daily transaction value in 2024 is on track to surpass last year's numbers, as network activity increases due to the proliferation of DeFi applications.
Currently, the average number of transactions per day is 1.15 million. close by The peak levels witnessed during Ethereum's significant performance in 2021.
