The notable dip in Ethereum’s transaction fees could lead to a price spike of ETH token, rallying to a breakout to $1,900, as reported by Santiment.
In March, the average gas fee for the Ethereum blockchain was $12.5 for each transaction, though the prices have declined to a record figure. Interestingly, the blockchain has seen several advancements, including the latest dip in network gas charges.
Ethereum (ETH) Gas Fees Dip to $2.45
Gas fees on the world’s largest smart contract network, Ethereum, have registered a massive plunge recently. This update follows an unforeseen spike at the beginning of July. Santiment, a crypto analytical platform, announced this in a tweet.
🤑 Following a brief stint where #Ethereum‘s network became rather pricey at $7.40 per transaction, the average fee has dropped back down to $2.45. Over the past 24 hours, $ETH and wrapped $WETH are getting the lion’s share of these fees. https://t.co/0br2LcwWWR pic.twitter.com/odoQWGcq0r
— Santiment (@santimentfeed) July 10, 2023
Santiment believes this massive gas fee reduction will lead to a huge price spike, as more users will be able to reengage the network now that charges are unbelievably lower than ever. Thus, Santiment believes the ETH price will recover to the $1,900 zone.
Furthermore, Santiment’s report showed that ETH became extremely costly for users at the network transaction charges surpassing $7.40 per transfer in early July.
The world’s second-largest blockchain by market cap had an average gas fee of $12.5 per transaction in March and has since followed a downtrend. Though, after skyrocketing in early July, the average transaction fee dipped to $2.45 on Monday, July 10.
Bullish Outlook for ETH
Santiment also reported that this development could spur a strong bullish rally for the Ethereum blockchain amid the choppy sentiment of the wider crypto market.
Furthermore, the analytical giant said that Ether (ETH) could surge beyond the $1,900 price in the coming days, weeks, or months. Besides the plummeting average gas fee, other metrics like social volume, development activity, and daily active addresses reveal a positive outlook for Ethereum’s price.
Interestingly, the daily active addresses on the Ethereum network revealed a dramatic spike, recording over 303.64k active addresses, according to Santiment. In addition, the Ethereum protocol’s development activity showed more than 104% growth in the past 30 days.
These impressive advancements around the Ethereum protocol provide strong confluences for the token’s price to surge and follow a bullish momentum.
However, many other crypto pundits believe Ethereum Blockchain CEO Vitalik Buterin’s latest view of the Ethereum staking protocol not being secure could pose a challenge to a price rally.
Currently, the ETH token is trading at $1 87, revealing a more than 4% decrease in the past seven trading days. Its senior contender, Bitcoin (BTC), is trading at $30 705, a 7.17% growth in the past 30 days.