Ethereum emerged as the best-performing cryptocurrency over the past week as its price rose by more than 6% to over $3,300.
Notably, blockchain analytical firm Santiment reported that the price increase coincided with a significant drop in transaction fees, which hit its lowest point in six months.
Ethereum Gas Fees Hit Six-Month Low
Ethereum’s average transaction fee is approximately $1.12, marking its lowest daily average cost since October 18, 2023. The introduction of the Dencun upgrade and the lull in the broader crypto market has resulted in less on-chain activity, driving Ethereum gas fees down.
This decline follows a peak at $15.21 in March, during which Ethereum experienced strong price performance and an uptick in demand.
“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. These fees will tend to peak (and sometimes diverge) around price tops, and go back to its resting state around price bottoms,” Santiment explained.
Nonetheless, Santiment predicted that the current gas price might be attractive for traders, pushing the market out of its current stagnation. This development could help turn Ethereum and altcoins upward once again.
Read more: Ethereum (ETH) Price Prediction 2024 / 2025 / 2030
Ethereum Gas Fees. Source: Santiment
Meanwhile, Consensys’ efforts to resolve Ethereum’s regulatory issues have sparked optimism. The firm initiated legal proceedings against the US Securities and Exchange Commission (SEC).
Consensys argued that the SEC’s endeavor to categorize Ethereum as a security was a regulatory overreach. It added that such classification would impede innovation and adversely affect developers, investors, and the larger institutions leveraging Ethereum’s decentralized framework.
“Ethereum is going to survive regardless. It’s not dependent on any one country or any one group of people. But the impact for the US is catastrophic, because if the SEC has its way, and declares Ethereum a security, then then it can’t be sold. For the most part in the US, people will not be able to buy it,” a Consensys spokesperson told BeInCrypto.
Read more: Four Reasons Why Ethereum Is Not a Security: Consensys
Besides that, asset manager Franklin Templeton made headlines by listing its spot Ethereum exchange-traded fund (ETF) on the Depository Trust and Clearing Corporation (DTCC) website. This development from the ETF renewed investors’ hope that the SEC might approve an Ethereum ETF in May.
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