Crypto altseason may arrive sooner as new metrics point to an impending Ethereum surge.
The altcoin emerged as one of the top-performing cryptocurrencies in the last week as it gained over 6%. It is noteworthy that the increase in the price of Ethereum coincided with a considerable drop in transaction fees, which hit its lowest point in six months, according to blockchain analytics firm Santiment.
Ethereum’s daily transaction fee has dropped to around $1.12, which is the lowest average cost since October 18, 2023. The reason behind this decline is the Dencun upgrade and the current quiet period in the cryptocurrency market which has resulted in less on-chain activity, leading to a reduction in Ethereum gas fees.
How it Affects Altseason
In March, Ethereum experienced a peak in gas fees at $15.21 during a period of strong price performance and an increase in demand. Historically, traders shift between two sentiments: optimism about the cryptocurrency market and belief that it is dead.
These sentiments can be observed through transaction fees. Fees usually peak around price tops and return to their resting state around price bottoms.
However, Santiment, a blockchain data analysis company, predicts that the current gas price may be attractive to traders, which could help the market move out of its current stagnation and turn Ethereum and altcoins upward again.
Recent Happenings in Ethereum
Meanwhile, Consensys has taken steps to resolve Ethereum’s regulatory issues, which has sparked optimism. The company has initiated legal proceedings against the US Securities and Exchange Commission (SEC). Consensys argues that the SEC’s attempt to classify Ethereum as a security is a regulatory overreach.
This classification would impede innovation and negatively impact developers, investors, and 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 declares Ethereum a security, then it can’t be sold. For the most part, people in the US will not be able to buy it,” said a Consensys spokesperson.
In other news, asset manager Franklin Templeton has listed its spot Ethereum exchange-traded fund (ETF) on the Depository Trust and Clearing Corporation (DTCC) website. This development has renewed investors’ hope that the SEC might approve an Ethereum ETF in May.
