Ethereum gas fees continue to rise after the recent all-time high. The trading volume on the decentralized exchange (DEX) is also increasing.
BitQT 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 capitalization.
On Friday, February 5th, the cryptocurrency briefly broke $ 1,710 per coin. Decentralized Finance (DeFi) is also partly responsible for the growing demand for DEXs built on the underlying Ethereum blockchain.
Gas charges are going through the roof
According to Gasnow, the ether transactions climbed almost to 500 Gwei (Ethereum’s version of Satoshis) that day.
This means that even slow transactions will cost a minimum of around $ 7. But DEXs like Uniswap (which use smart contracts) have seen transactions of over $ 70 in the past few days.
Is Ethereum heading for $ 2,000?
ETH broke its all-time high again and will likely do so again and again 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 around 140% since the start of the year. The remarkable increase can be attributed to several possible factors.
The Uniswap DEX currently has a daily volume of 1.89 billion dollars. This is more than Kraken crypto exchange in terms of volume. Then there is Grayscale, who recently reopened their Ethereum trust. The purchase of over $ 38 million in ether is likely a factor in the recent surge.
Ethereum at $ 2,000 may sound like a dream. However, the strategists at Fundstrat Global Advisors LLC believe that ETH could go much higher – to $ 10,500.
Fund Trat believes that the growing popularity in DeFi sector (to a major reason for the recent rally from Ethereum buy Ethereum instructions ) is. With so many DeFi projects running on the Ethereum blockchain, the euphoria is likely to spark massive demand.
More and more ETH is being used for staking
The number of ETHs used in version 2 of the project is now around 2.94 million. That’s 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 will likely continue to rise, spurred on by increased usage by the various DEX and DeFi projects.