Ethereum at $1,710 – new all-time high! But gas fees explode again
Ethereum gas fees continue to rise after the recent all-time high. Trading volume on the decentralised exchange (DEX) is also on the rise.
Ethereum (ETH) is perhaps the most popular cryptocurrency right now in terms of blockchain usage. However, transaction costs are still a major hurdle for the second largest cryptocurrency by market capitalisation.
On Friday, 5 February, the cryptocurrency briefly broke through $1,710 per coin. Decentralised Finance (DeFi) is also partly responsible due to the Bitcoin Revolution growing demand of DEXs built on the underlying Ethereum blockchain.
Gas fees go through the roof
According to Gasnow, Ether transactions climbed almost to 500 Gwei (Ethereum’s version of Satoshis) on the day.
This means that even slow transactions cost a minimum of around $7. But DEXs like Uniswap (which use smart contracts) have seen transactions of over $70 in recent days.
Is Ethereum heading for $2,000?
ETH has broken its all-time high again and is likely to keep doing so in the coming weeks. The world’s second most popular cryptocurrency is set to push towards $2,000 per coin after the recent price action.
The bullish sentiment on Ethereum has led to an increase of about 140% since the beginning of the year. The remarkable rise can be attributed to several possible factors.
The Uniswap DEX is currently reaching a daily volume of $1.89 billion. This is more than crypto exchange Kraken in terms of volume. Then there’s Grayscale, which recently reopened its Ethereum trust. Buying over $38 million in Ether is likely a factor in the recent surge.
Ethereum at $2,000 may sound like a dream. However, strategists at Fundstrat Global Advisors LLC believe ETH could rise much higher – to $10,500.
Fundstrat believes that the growing popularity in the DeFi sector is a major reason for Ethereum’s recent rally (Go to Buy Ethereum Guide). With so many DeFi projects running on the Ethereum blockchain, the euphoria is likely to create massive demand.
More and more ETH is being used for staking
The number of ETH used in version 2 of the project is now around 2.94 million. This is more than 2.5% of the circulating supply and means that the ETH 2 contract is now worth more than $5 billion.
With ETH 2.0 on the horizon, ETH is likely to continue to rise, spurred by increased usage from the various DEX and DeFi projects.