The cost of conducting transactions on the Ethereum network saw a significant decline on April 27, dropping to $1.12. At the same time, the circulating supply of Ethereum reached its highest point in recent months. This coincided with a decrease in gas fees, which hit a six-month low, and a slight increase in ETH pricing over the weekend. Experts at Santiment, a crypto analytics platform, believe that these developments could signal a potential rebound in altcoins.
Santiment’s analysis indicates that fees tend to peak at the beginning of market peaks and then return to a lower level during market troughs. In February, there was a surge of interest in the ERC-404 token standard, leading to gas fees on Ethereum reaching an eight-month high.
According to Santiment, the low gas fees could be a sign of increased activity on the Ethereum network and the start of an altcoin rally. CoinMarketCap data shows that the price of Ether has only seen a modest increase of 4.3% in the past week. However, native tokens of Ethereum layer-2 networks such as Optimism, Arbitrum, and Polygon experienced gains of 11.7%, 3.5%, and 2.8%, respectively, on April 27.
The circulating supply of Ethereum has surged to its highest level in recent months due to decreased network activity. Ultrasound.money statistics reveal a net increase of 16,979 new Ether (ETH) in the past 30 days, with 74,458 new ETH issued and only 57,516 ETH burnt.
In other news, South Korea has announced plans to strengthen its existing crypto crime investigation unit.