Ethereum’s 6-month lows suggest altseason is in: Santiment
The price of Ether (ETH) rose slightly over the weekend as gas charges on the Ethereum network fell to a six-month low, which analysts at crypto analytics platform Sentiment say could signal an upcoming altcoin rally.
On April 27th, according to the April 28th post from Sentiment, the average payment of the Ethereum translation dropped to $1.12.
“Traders have historically moved between emotional cycles where they feel crypto is going to the moon, or where they feel it is ‘dead,' trading fees can be seen,” Sentiment wrote.
Santiment explained that fees peak at local market highs and return to “rest state” lows during market lows.
Gas fees on Ethereum reached an eight-month high in February this year amid a wave of interest in the experimental token standard ERC-404.
The analytics platform suggested that lower gas fees could signal future growth in Ethereum network activity and herald the start of an altcoin rally.
“Primarily with the markets pulling back over the last 6 weeks, the lack of interest and pressure on the network could help ETH and its associated altcoins move faster than many might expect.”
It comes as the price of Ether rose slightly, gaining 4.3% in the past week, according to CoinGecko.
Related: Franklin Templeton Lists Ethereum ETF on DTCC
As of April 27, Ethereum layer-2 networks Optimum (OP), Arbitrum (ARB), and Polygon (MATIC) accounted for three of the top five best-performing 50 cryptocurrencies, gaining 11.7%, 3.5% by market capitalization. and 2.8% respectively.
Meanwhile, the low activity on the network has reached the peak of the supply of Ethereum distribution in the last month.
Over the past 30 days, 74,458 new ETH were issued while only 57,516 were burned, resulting in a net supply of 16,979 new Ether (ETH) according to ultrasound.money data.
This is in stark contrast to the previous five months, which included a series of price cuts. Despite recent spikes in ETH-based inflation, more than 437,000 ETH were burned through the so-called ‘merger', which took place on September 15, 2022 after the network switched to a proof-of-stake method.
Magazine: The Real Dangers of Athena's Stable Coin Model (Not What You Think)
