Since the start of 2020, and with Ethereum 2.0 on the horizon, the Ethereum transactions have been steadily rising — not even the March market collapse put a stop to that. However, the transaction levels have now spiked to levels only last seen in the 2017 bull run.
Towards the end of December 2017, Bitcoin managed to climb to it’s all time high of $20,000, but in the altcoin markets there was also good time as Ethereum also took advantage of those. The markets were full of action with huge amounts of transactions, and now, these levels have returned.
Meanwhile, the price of Ethereum has actually fallen at the same time as the spike in transactions, but it appears to be a much more general market correlated occurrence than anything directly linked.
However, what the transaction increase could be linked to is the growth in DeFi across the Ethereum network and this also saw the fees associated with Ethereum jump above Bitcoin’s for the last two to three weeks.
Finding more use
Ethereum is one of the important coins in the cryptocurrency space as it introduced the world to smart contracts and a much broader application of blockchain technology. This, in part, is the reason that Ethereum is looking towards a major upgrade that has many excited.
However, Ethereum has also found itself being more useful for other upgrades and moves in the cryptocurrency space as the likes of Stablecoins and DeFi have come to the programmable blockchain network and helped accelerate its use.
With this added use there has come the added transaction — which have now spiked greatly — but it has also come with added fees.
The fees for using Ethereum are at the highest they have been for two years and they have gone above Bitcoin for the second time in the last two months.
Coinbase researcher Max Bronstein showed this in a graph and suggested the most recent surge seems to be due in large part to increased interaction with stablecoins on the Ethereum network.
This increase in fees of course also comes with an increase in the transactions, but the sudden spike does not seem to have any direct reason. It looks rather to be an accumulation of more usage of Etereum.
Data from ETH Gas Station shows that USDT is the biggest spender of gas on the network, followed by popular DeFi dapps like Uniswap and Kyber Network.