Ethereum Fees Plunge To A 6-Month Low, Suggesting An Altcoin Rally Is Coming ''Sooner Than Many Expect,'' Santiment Says

Ethereum Fees Plunge To A 6-Month Low, Suggesting An Altcoin Rally Is Coming ”Sooner Than Many Expect,” Santiment Says

Updated: 29 April 2024

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Ethereum network fees plunged to a six-month low, suggesting altcoins may rally ”sooner than many expect,” said on-chain intelligence firm Santiment.

Ethereum’s gas fees dropped to as low as $1.12 on Apr. 27, a decrease in network fees that might signal a market bottom, Santiment said in an April 28 post on X.

“Traders historically move between sentimental cycles of feeling that #crypto is going ‘To the Moon’ or feeling that `It is dead,’ which can be observed through transaction fees,” it said. “With markets mainly retracing over the past 6 weeks, the lack of demand and strain on the network may help turn ETH and associated altcoins around sooner than many may expect.”

NFT Traders Capitalize On Reduced Ethereum Fees

Non-fungible token (NFT) traders have started to capitalize on the reduced network fees. In the last 24 hours, Ethereum recorded a 25% increase in NFT sales to more than $6.8 million.

Bitcoin recorded a 20% decline in such activity to $7.1 million during the same period.

🤑 #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

Underperforming ETH Takes A Toll On The Altcoin Market

The Ethereum price continued to fall in the past 24 hours, according to CoinMarketCap. After plunging more than 4% in the last 24 hours, the altcoin leader’s price stood at $3,177.94 as of 2:45 a.m. EST.

This latest drop in price pushed ETH’s weekly performance into the red as well. Meanwhile, the Ethereum price is also down more than 11% over the past 30 days.

ETH’s woes contributed to the altcoin market’s troubles during the last month. Throughout this period, the collective market cap for all cryptos excluding Bitcoin plummeted more than 16%, TradingView data shows.