Ethereum transaction fees hit a new low last year, analysis institutions: will restart the altcoin bull market

The gas fees on the Ethereum network have dropped to a six-month low, according to on-chain analytics firm Santiment, which suggests a potential upcoming altcoin bull market.

Santiment: On-chain Fees Hit Bottom

Santiment tweeted on April 28 that the average fee for Ethereum transactions has dropped sharply to $1.12. The emotional cycle of traders often oscillates between "xxx To the Moon" and "Cryptocurrency is dead," which can be observed through on-chain fees.

Santiment explained that on-chain fees tend to peak around market tops and fall to lows in the "rest area" near market bottoms.

Since February this year, due to price increases and the rise of the new experimental token standard ERC-404, Ethereum gas fees hit an eight-month high. Over the past six weeks, the market has been in a retracement phase, and transaction fees have dropped to a low point, indicating that the reversal of ETH and its competitor coins may happen faster than expected.

🤑 #Ethereum's average fee level has dipped to just $1.12 per network transaction, the lowest average cost in a day since October 18th.

Traders historically move between sentimental cycles of feeling that #crypto is going "To the Moon" or feeling that "It Is Dead", which can… pic.twitter.com/8b8rLMLyIf

— Santiment (@santimentfeed) April 28, 2024

ETH Transaction Fees Hit New Low, Ushering in Bullish Momentum

Santiment noted that on April 27, the fee for a single Ethereum transaction was $1.12, the lowest since October 18 last year.

At that time, ETH was only $1,563, and after starting a bullish trend, it reached $4,092 on March 12 this year, causing on-chain fees to soar.

ETH Shows Deflation Since Merge

However, the cooling of on-chain activities has led to a surge in the ETH supply to the highest point in nearly a month.

Data from ultrasound.money shows that in the past 30 days, 74,486 ETH were minted, with only 56,947 ETH burned, ending a five-month deflationary trend.

However, since the ETH merge, a total of -437,079.12 ETH has been burned, resulting in a deflation rate of -0.224%.