Ethereum has long grappled with high transaction fees, leading to the rise of Layer 2 chains and scaling solutions to offer cheaper options for users.

Recently, data from Santiment, a blockchain analysis platform, reveals a notable improvement. Ethereum's average fee per network transaction has plummeted to $1.12, marking one of the lowest points since October 18.

Santiment mentioned in a recent post that the decrease in demand and strain on the network amid market retracements could potentially facilitate a quicker recovery for Ethereum and related altcoins.

According to CoinMarketCap, the circulating supply of Ethereum has surged, attributed to a consistent decline in the burn rate over the past fortnight. The current circulation stands at over 122 million Ether, the highest since March.

Gas fees, which measure the computational effort needed for operations on the Ethereum network, currently sit at 10 Gwei, up from a recent low of 4.48 Gwei. Despite this increase, gas fees amount to around $0.60, a significant drop from the peak of $3.788 recorded in May 2023.

Santiment also noted a cyclical pattern in trader sentiment, shifting between extreme optimism and pessimism. Transaction fees typically peak during bullish phases and return to normal during market downturns.

In conclusion, Ethereum's transaction fees have reached their lowest levels in over six months, offering relief to users and potentially signaling a turnaround for the cryptocurrency and its counterparts amid market retracements.