Ethereum (ETH) Gas Breaks Above All-Time High. Will Price Follow?

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Mon, 06/22/2020 - 12:23
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Vladislav Sopov
A couple of Ethereum (ETH) network usage metrics surged today. Analysts are guessing how long it will take for the Ether price to reflect this spike
Ethereum (ETH) Gas Breaks Above All-Time High. Will Price Follow?
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According to statistics from the Glassnode on-chain data vendor, Ethereum (ETH) has surged above 70B units for the first time in its history. Analysts and traders are attempting to figure out whether this will result in price growth.

Ethereum (ETH) network usage skyrockets

Today, the 'Ethereum Gas Used Total' statistic from the Glassnode data studio broke above the enormous level of 70,000,000,000 units. To compare, on Black Thursday it was 13.3% lower.

Ethereum (ETH) network usage spikes
Image by Glassnode

In 2019, this metric surged above 60B only once due to market 'greed' euphoria caused by the 'Xi Spike' in Q3. Typically, this number stayed in the 40-55B range.

This isn't the only metric of Ethereum (ETH) network usage that went through the roof on Monday. As recently covered by U.Today, the quantity of non-zero Ethereum (ETH) addresses also reached a new ATH, above 41,959,507 wallets.

Furthermore, someone has moved 300,000 Ether or $68.4M, between unknown wallets. This activity was registered by the automated service Whale Alerts.

And what about the price?

This upsurge in numerous meaningful metrics of the Ethereum (ETH) network can be attributed to a couple of factors. First of all, there is insane growth and euphoria around the DeFi segment. As previously covered by U.Today Crypto News, it is DeFi applications that use a substantial share of the Ethereum (ETH) resources.

Also, the enormous activity of the Ponzi schemes that use Ether-based stablecoins can overload the Ethereum (ETH) network. 

However, the Ethereum (ETH) price is lagging behind the network usage. It surged only 2% on main spot platforms in the last 24 hours. But Dutch cryptocurrency analyst and trader Michael van de Poppe believes that the Ethereum (ETH) price will still target $300 in a matter of weeks.

Michael van de Poppe predicts Ethereum (ETH) price may grow
Image via Twitter

Also, seasoned investor Ryan Sean Adams believes that Ethereum (ETH) will benefit from DeFi growth:

Good for DeFi = Good for ETH

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)