CryptocurrencyEthereum (ETH)Price Analysis

Ethereum Records An All-Time New High For Daily Transactions Fees Of $22 Million

  • 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.

📰  Gas Fees Spike As Ethereum Raises Daily Fees To $50 Million

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.

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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.

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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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