Ethereum Price Rebounds: On-Chain Activity & BlackRock’s ETF Drive Gains
Ethereum ETH is trading at $2647 with +1.78% gains in 24 hours. After experiencing 3 consecutive days of price decline, ETH has finally
Ethereum ETH is trading at $2647 with +1.78% gains in 24 hours. After experiencing 3 consecutive days of price decline, ETH has finally found some support and started gaining. Let us explore the latest developments surrounding the ETH network.
Ethereum Network Fees Surge Amid Increased On-Chain Activity
Coinbase reports that due to an increase in on-chain activity, the fees associated with Ethereum network transactions have increased dramatically within the past two weeks.
According to Coinbase’s weekly report (released on September 27), the median transaction cost increased from $0.09 at the beginning of the month to $1.69 by the end of the month.
The average Ethereum petrol fees were 498% higher than the monthly average between September 16 and September 26.
Ethereum Gas Fees Skyrocket 498%
Ethereum transaction fees have surged over the past two weeks, driven by an uptick in onchain activity, according to Coinbase’s latest report. From Sept. 16 to Sept. 26, average gas fees rose 498%, with the median transaction cost climbing from… pic.twitter.com/TIeVCt8XBI
— The Wolf Of All Streets (@scottmelker) October 1, 2024
An important on-chain statistic that is adding to the growing fees is the analysis of Ethereum addresses. New addresses have increased by 43%, and daily active addresses have grown by 29%.
The number of addresses with no balance has increased by 28%, although the number of active addresses is still very high.
Higher transactions happening at once meant higher network activity. Transaction fees are directly proportional to the network’s activity level because a higher volume of transactions makes verification more difficult.
According to blockchain efficiency company Gashawk, gas prices have increased many times in the past week, reaching 40 gwei.
According to Gashawk, there have been multiple instances in the past week where the price of ETH Gas has surged beyond 30–40 gwei before tumbling back down to 5–10 gwei.
Current #Ethereum (#ETH) safe low gas price: 14.164625455 Gwei
Fee chart(7d): https://t.co/OXRNccqoOB
24h: pic.twitter.com/ldsHux9nZ3— Ethereum Gas Price Chart🔔 (@ETHgasChart) October 1, 2024
The exponential growth of DEX volumes is another factor. Ethereum (ETH) traded hands on DEXs for a total of $978 million in the past 24 hours, with a weekly volume of $8.38 billion, a rise of 2.13%.
The new regulations regarding the Ethereum staking flows are another factor that has contributed to the price hike.
BlackRock’s Spot Ethereum ETF: Slower Growth but Strong Long-Term Potential
After a surprise approval by the SEC, ETHA went live in July. It took less than a month to hit $1 billion in net inflows. ETHA had more than 380,601 Ethereum tokens (ETH) worth about $1 billion as of September 30.
BlackRock's Ethereum ETFs Exceed $1 Billion in Total Assets Within Just Two Months$ETH is Ultra Sound Money!#Ethereum https://t.co/j32vta5eVj pic.twitter.com/ps9nv2hVU1
— Ethereum Daily (@ETH_Daily) September 30, 2024
ETHA is still one of the best-performing crypto ETFs in the world, even though it isn’t as good as BlackRock’s spot Bitcoin ETF (IBIT), which reached $2 billion in AUM just 15 days after it launched.
BlackRock and other ETF experts were not completely surprised by the flat results. Mitchnick thinks that buyers will find it “less easy” to understand how to invest in Ethereum.
According to Fortune, BlackRock said that the situation that the trading volume and capital inflow of Ethereum ETF are much lower than that of Bitcoin ETF will not change soon because Ethereum's investment narrative is not easy to digest for many investors and needs to be…
— Wu Blockchain (@WuBlockchain) October 1, 2024
Mitnick further said that investors would put 20% of their cryptocurrency wealth into Ethereum and the other 80% into Bitcoin.
The SEC gave the go-ahead for nine spot Ether ETFs in July. Several companies, including BlackRock, Fidelity, Bitwise, and Invesco, have released ETFs. As a whole, these ETFs have taken in about $7 billion since they began trading, which is approximately 2 months.
To sum up, BlackRock’s spot Ethereum ETF, also known as ETHA, has grown more slowly than its Bitcoin cousin.
However, Robert Mitchnick, the company’s head of digital assets, is still optimistic about its long-term prospects, especially given how quickly it has grown its assets under management (AUM).
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