User activity on Ethereum spiked to multi-year highs. Thus, against Bitcoin, the price of Ether hits 19 months high.
The price of ETH (Ethereum’s Ether) surpassed $450. Thus, a massive buy wall on the major cryptocurrency exchange Bitfinex emerged. Ethereum’s Ether achieved $270, shortly after that. Therefore, it is at a 19-month high against BTC (Bitcoin).
The crypto has sustained strong upwards momentum buoyed the rising user activity on ETH throughout the past two months.
Etherscan’s data shows that the daily transaction volume on Ethereum increased from about 420,000 in January to over 1.2 million transactions per day in August.
The explosive demand for small decentralized finance (DeFi) and Uniswap tokens has created a consistent demand for the crypto. Users must utilize ETH to cover transaction fees on the Ethereum blockchain network. It is also referred to as ‘gas.’
As a result of surging daily transactions, the gas costs led users to purchase Ethereum to pay for network expenses. The DeFi market started to see exponential growth since early June. Thus, it fueled the buying demand for ETH.
The gas costs are surging fast; it causes miner revenues to spike. It is according to data from on-chain market analysis firm Glassnode. The researchers wrote that Ethereum miners earned about USD 500,00 in transaction fees in the past hour. It is a new record high for a single hour.
The ongoing trend will not change in the near term. It is because second-layer scaling solutions and ETH 2.0 is far away.
The DeFi market continues to expand. Thus, it leads more users to a decentralized platform, for example, Uniswap. It remains a question if that will add more buying demand for Ethereum throughout September.
Wealthy individuals, or whales’ miners are seemingly buying up Ethereum, spotting the demand. Paolo Ardoino is Bitfinex chief. He said that someone wants to buy Ehtereum on the Bitfinex 7k bid wall.