Ethereum Gas Fees Hit Six-Month Low, Indicating Potential Altcoin Surge: Santiment

cryptonews.com:

Gas fees on the Ethereum network have experienced a significant drop to their lowest levels in six months, even as the price of Ether saw a slight rally over the weekend. 

Analysts from crypto analytics platform Santiment suggest that this decline in gas fees could be a signal for an upcoming altcoin rally.

According to  Santiment’s post on X , the average fee for an Ethereum transaction fell as low as $1.12. 

The platform explained that transaction fees often follow cycles of investor sentiment, swinging between extreme optimism and pessimism. 

Gas fees tend to peak during market tops and then decline to lower levels during market bottoms.

Earlier this year, gas fees on Ethereum reached an eight-month high in February due to a surge in interest  for  the experimental ERC-404 token standard. 

However, the current low gas fees could indicate a potential increase in activity on the Ethereum network, potentially leading to an altcoin rally.

Santiment  suggests that the recent retracement in the markets, coupled with the reduced demand and strain on the network, may result in a quicker turnaround for Ethereum and associated altcoins than expected.