Transaction costs on Ethereum, the largest smart contract platform, have experienced a significant reduction following a sharp spike earlier this month, offering renewed hope for investors. Behavioral analysis platform Santiment unveiled this positive development on Monday, suggesting a potential bullish price recovery for Ethereum back to the $1,900 territory.
Santiment’s disclosure highlighted that Ethereum had become prohibitively expensive for users, with network gas fees surging to a staggering $7.40 per transaction in early July. Comparatively, average fees in March stood at around $12.50 per transaction. However, after the rapid surge, the average ETH transaction fee has now dropped to an affordable $2.45 as of July 10.
Bullish Sentiments for Ethereum
Santiment’s analysis suggests that this development could trigger bullish sentiments for Ethereum, which currently holds the position of the second-largest cryptocurrency by market capitalization. These sentiments are particularly crucial amid the overall sluggishness in the broader market. The leading analytic platform further projects that Ether (ETH) could surpass the $1,900 mark in the coming weeks or months.
Additional metrics, including daily active addresses, social volume, and development activity, contribute to the optimistic outlook for ETH’s price. Santiment revealed that as of July 11, the number of daily active addresses on ETH witnessed a notable spike, reaching 303.64k. Moreover, development activity on the smart contract-enabled blockchain experienced a remarkable surge of over 104% in the past 30 days.
While these positive developments and the reduction in network gas fees favor ETH’s upward movement, concerns have arisen due to Vitalik Buterin’s recent statements about the safety of the ETH staking protocol. Such skepticism from industry players could potentially hinder Ethereum’s progress.
ETH is currently trading at $1,876, displaying a decline of over 4% in the last seven days. In contrast, Bitcoin (BTC) has seen a 7.17% increase over the past 30 days. As Ethereum continues to navigate these developments, investors eagerly await the outcome, keeping a watchful eye on the future trajectory of the second-largest cryptocurrency.
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