Fun

Ethereum Fees Hit 9-Month High Amid Strong DeFi Activity – Details

News Feed - 2024-12-14 10:12:57

Este artículo también está disponible en español.


The price of Ethereum recorded an overall decline of 2.08% in the past week in line with the general performance of most altcoins. While the prominent cryptocurrency struggles tomake any significant breakout past $4,000, certain developments on its underlying network have drawn investors’ attention. Related Reading Ethereum Price Aims Higher: A Smooth Path To $4,000 and Beyond? 1 day ago Ethereum Weekly Fees Rise By 18% Amid DeFi Ecosystem Boom


In a recent report on December 13, crypto analytics company IntoTheBlock stated that weekly Ethereum network fees rose by 17.9% in the past week reaching an estimated $67 million – the highest-ever value since April. 


According to analysts at IntoTheBlock, these high network fees can be attributed to ETH’s price balancing as Bitcoin retraced to $100,000. In addition, there has been a significant increase in DeFi activity on the Ethereum blockchain. 


Providing more insight into Ethereum’s vibrant DeFi ecosystem, the Satoshi Club highlights that DeFi lending has been on the rise, with traders leveraging their Wrapped Bitcoin (WBTC) and Wrapped Ethereum (WETH) to borrow stablecoins. These wrapped assets allow users to maximize their collateral utility by tapping into the liquidity and stability of DeFi protocols while maintaining exposure to major cryptocurrencies i.e. Bitcoin and Ethereum. 


Notably, the demand surge for lending drove interest rates to exceptional levels, now exceeding 10% on average and reaching as high as 40% on certain platforms. Interestingly, these figures mirror the peak dynamics seen in the 2022 bull market.


Aave, one of Ethereum’s major DeFi protocols with a TVL of $22.46 billion has been a focal point on this increased DeFi activity, recording an impressive $500 million in net inflows over the last week.


While heightened network activity driven by increased DeFi activity can indicate growing interest in the Ethereum network, investors should note that elevated Ethereum fees will pose challenges for smaller users being rewarding only for those who can capitalize on high interest rates.


  Source: IntoTheBlock Related Reading Ethereum Price Preps for Breakout: Will Bulls Drive a Massive Upswing? 2 days ago ETH Price Overview


At the time of writing, Ethereum trades at $3,914.08 reflecting a minor loss of 0.22% in the past day.  On the other hand, the altcoin is up by 21.39% on its monthly chart representing its stellar performance in the past few weeks 


As earlier stated, Ethereum’s most immediate resistance is the $4,000 price zone which has offered much opposition to price growth since the start of December. By breaking past this price barrier, Ethereum is likely to surge to $4,900 which represents its current all-time high and next significant price resistance.


With a market cap of $471.16 billion, Ethereum remains the second-largest cryptocurrency representing 12.9% of the total digital assets market. ETH trading at $3,915 on the daily chart | Source: ETHUSDT chart in Tradingview.com Featured image from Empiricus, chart from Tradingview

News Feed

Final Judgment: Telegram to Pay Crypto Investors Back $1.2 Billion, US Court Orders
Final Judgment: Telegram to Pay Crypto Investors Back $1.2 Billion, US Court OrdersThe dispute between Telegram and the U.S. Securities and Exchange Commission (SEC) is coming to a
Bitcoin ETF volumes hit 7-week high as BTC price nears $67K
William Suberg44 minutes agoBitcoin ETF volumes hit 7-week high as BTC price nears $67KBitcoin ETFs see daily volumes of nearly $6 billion in a return to levels not seen since late March, with BTC price hitting new May h
Cynthia Lummis backs Ian Cain over crypto lawyer John Deaton for Senate
Turner Wright8 hours agoCynthia Lummis backs Ian Cain over crypto lawyer John Deaton for SenatePro-crypto Senator Cynthia Lummis cited Republican Ian Cain’s understanding of blockchain technology and the digital econom
Bitcoin miner bankruptcies will be less common this cycle — Hut8 CEO
Brayden Lindrea3 hours agoBitcoin miner bankruptcies will be less common this cycle — Hut8 CEOA slew of Bitcoin miners filed for bankruptcy in the crypto winter of 2022 but Hut 8 CEO Asher Genoot is adamant that things
Skybridge Capital Cofounder Says Gamestop Activity Is ‘More Proof That Bitcoin Will Work’
Skybridge Capital Cofounder Says Gamestop Activity Is "More Proof That Bitcoin Will Work" The New York-based Skybridge Capital cofounder, Anthony Scaramucci, rec
Tom Mitchelhill2 hours agoChainlink downplays worries after users notice quiet change to multisigChainlink critics have reiterated concerns about the oracle network’s supposed centralization after a subtle adjustment t
How Bitget Became a Dark Horse and Earns Market Share and Trust From Millions in Crypto Winter
How Bitget Became a Dark Horse and Earns Market Share and Trust From Millions in Crypto Winter sponsored 2022 was one of the roughest years in the crypto industry, which saw the col
Mainstream Investment Vehicles Tied to Cryptocurrencies Grow Exponentially
Mainstream Investment Vehicles Tied to Cryptocurrencies Grow Exponentially These days bitcoin and a variety of other digital assets are now being traded as funds and traditional
While ETHW Has Lost 35% in 2 Weeks, PoW Network’s Defi TVL Swelled by More Than 1,200%
While ETHW Has Lost 35% in 2 Weeks, PoW Network’s Defi TVL Swelled by More Than 1,200% Since the cryptocurrency launched ethereumpow (ETHW) has seen spot market prices decline by
US Prosecutors Seek to Further Restrict Former FTX CEO Sam Bankman-Fried’s Internet Access
US Prosecutors Seek to Further Restrict Former FTX CEO Sam Bankman-Fried"s Internet Access The U.S. attorney for the Southern District of New York (SDNY), Damian Williams, and the
Financial Analysts Expect US Dollar to Soften Further, 2021 Could Be the Greenback’s ‘Worst Year Ever’
Financial Analysts Expect US Dollar to Soften Further, 2021 Could Be the Greenback"s "Worst Year Ever" Well before the coronavirus pandemic, global economists ex
Zapala Free Zone to Offer New Opportunities to Bitcoin Miners in Argentina
Zapala Free Zone to Offer New Opportunities to Bitcoin Miners in Argentina The Zapala Free Zone, an area located in Neuquen, Argentina that has the objective of incentivizing vario