Traders pay transaction fees for every transaction they execute on a network like Ethereum. The higher the transaction fees, the higher a trader has to shed away a portion of their holdings. Similarly, a drop in transaction fees signals that traders don’t have to pay a higher amount for their transactions. The positive side to the reduction in transaction fees hints at the potential of an increase in activity in the future. However, Ethereum’s ecosystem has sparked a new side to this argument.
What Happened to Ethereum’s Transaction Fees?
For reference, the transaction fees on Ethereum fell to $1.12 on April 27, 2024. That marked the lowest in the last 6 months. What makes this interesting is the fact that it was only in February this year that the network marked the highest number in the last 8 months – from February ’24. Now, on the other side of the drop, it signals that altcoins could gain traction faster than everyone’s expectations.
Traders often judge the phase of an ecosystem by the transaction fees that are being charged. A drop does send happy signs, but it simultaneously makes traders believe that the crypto could be performing badly and that the team is hoping to pump up the activity. The historic move of traders between bullish and bearish sentiments has been driven by this principle.
Altcoins are also rising because of the constant decline in the likes of ETH. There is simply no comparison in terms of token value, but the return the community gets is quantifiable irrespective of how it performs when paired with the US Dollar.
Exploring Altcoins
Some of the altcoins that are being considered are Optimism, Arbitrum, Polygon, and MAGA VP. The entrance of MAGA VP has attracted a lot of attention since it is a newly launched token with huge potential. The remaining tokens are fundamentally gaining their value by leveraging the long-standing history in the crypto market. OP is at $2.54 with a slight dip of $5.02%, and MATIC lost 4.83% during the same time window to exchange hands at $0.705 at the time of writing this article. Traders have jumped to buy the dip.
That is majorly evident from a whale buying 237 billion SHIB tokens on April 22, 2024, in anticipation of a further rise. MAGA VP holds the key to fetching higher returns. MVP has also generated a gain of 87.19% in the last 7 days and 128.165 in the last 30 days. It is currently listed at $0.1307 on 11 CEX and 4 blockchains and is poised to soon surpass the milestone of $1. An early resistance has been set at $0.7, which is ~5.4X from current levels.
MAGA VP is driven by the tokenomics model of its ecosystem, which has imposed a 0% transfer tax and 1% of the buy/sell tax is allocated towards TRUMP token rewards for MVP holders, incentivizing long-term hodling and active participation within the ecosystem.
Conclusion
Ethereum’s transaction fees were reduced to its lowest on April 27, 2024, rallying at $1.12. That has paved the way for speculation that altcoins could gain traction faster than before. Leading the way are OP, ARB, MATIC, and MAGA VP.
You can buy MAGA VP at Uniswap, Bitmart, XT.com, or LBank!
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