- This fee surpasses that of Bitcoin’s all-time high of $21 million
- Grayscale also contributed to the increased transaction fee as it acquired about $47, 000 worth of ETH.
- Ethereum is preparing for another push upward as it consolidates around $1600.
The new month has been bullish for most coins. Ethereum’s daily transaction fee is rising to a new ATH. On February 4, ETH has recorded a $22 Million transaction fee, making an all time-time high. According to data released by Coinmetrics, the daily fees of Ethereum has surpassed the all-time high of $21 Million recorded by Bitcoin in 2017. This was revealed in the
Earlier today, Ethereum also made an all-time high of $1,695 and is readying for another swing up. This news came in time as Grayscale acquired more ETH and opened its trust for investors. The recent bullishness the ETH has had is due to the general increase of investor’s interests in blockchain technology, particularly cryptocurrencies.
Grayscale Contributes To Ethereum’s Price Rise
Grayscale, a fund manager, acquired about $38 Million worth of Ethereum based on investors’ demand. After the company bought these extra 24,796 Eth, it now manages more than $4 Billion worth of Ethereum.
This news came ahead of ETH futures’ launch on the Chicago Mercantile Exchange (CME) as Ethereum broke the all-time highs. Based on the data released by Skews, a crypto analytics company, it predicted that there is about 25% chance that ETH rises above $2000 in three months.
Paolo Ardoino, CTO of Bitfinex, revealed that the upward surge that Ethereum has experienced lately is due to the “fortunes of the entire crypto ecosystem.” Many crypto analysts have weighed in on the trajectory of ETH, with many predicting a general bullish trend for the coin.
Miners Benefit From Increased Fees
The rise in Ethereum’s average daily transaction fee means that it is going to become costlier to use the Ethereum blockchain for making transactions and using DeFi apps. For instance, Uniswap now charges more for exchanging different coins. Also, transactions utilizing Ethereum based coins are charging higher fees.
The rise in ETH price has caused a spike in transaction fees and has increased demand for the cryptocurrency. As a result of the rise in Ethereum’s price and transaction fees, Ethereum miners have received more than$22.75 million in the last few hours.
Currently, miners on bitcoin and Ethereum are now earning about $15.81 million and $4.485 million. About half of the profit made by miners come from transaction fees. Many crypto followers are attributing the rise in transaction fees to the several platforms in the ecosystem.
Another driver of the transaction fee, as noted by analyst, is that industry leaders are now utilizing more gas. Alexi Lane, a spokesperson for Ethplorer, attributed the rise to the increased activities of USDC, TetherUSD, 1inch Exchange, and Uniswap saying that they have “all played a part in this.”
He further revealed that Uniswap and TetherUSD are spending about 30% of the gas on Ethereum. However, those who benefit from this high fees are the miners. The earnings of Ethereum miners this January was about double of their December earnings.