The costs associated with using Ethereum’s network, known as gas fees, have dropped to the lowest point in six months, despite a slight increase in the value of Ether over the weekend.
According to analysts at crypto analytics platform Santiment, this could be a sign of a possible rally in alternative cryptocurrencies. On April 27, the average fee for an Ethereum transaction fell to $1.12, as reported by Santiment in a post on April 28.
Santiment attributes these fluctuations in fees to the emotional swings of traders, who tend to either believe that the crypto market is going to experience a sharp rise, or feel that it is dying out.
The platform also notes that transaction fees tend to peak at local market peaks and then decrease to “resting state” lows during market bottoms.
The last time Ethereum gas fees were this low was in February when they reached an eight-month high due to the popularity of a new token standard called ERC-404.
