As Ethereum’s price surpassed the $4,000 mark once again, investors noticed a significant improvement in network efficiency compared to previous milestones in 2021.
Despite the higher market valuation, transaction fees have plummeted to an average of $9.35, a stark contrast to the $62.85 observed during the last peak in November 2021. This reduction in gas fees can be attributed in part to the advancements made through the Ethereum 2.0 transition.
🤑 Unlike the previous time that #Ethereum crossed above a $4K market value (October & November, 2021), the network is less than 1/6th as cheap per transaction today. With gas fees at a modest $9.35 in gas fees, on average, this can be partly attributed to the improved network… pic.twitter.com/bXWmmrqX3L
— Santiment (@santimentfeed) March 14, 2024
The decline in transaction costs and network congestion opens doors to broader use cases and increased adoption of Ethereum over time. Lower fees facilitate smoother transactions and encourage developers and users to explore innovative applications on the Ethereum network.
However, Ethereum’s price trajectory took a downturn, experiencing a 5% decline with a dip to $3,571.77, according to Coinmarketcap data. This price movement underscores the volatility inherent in cryptocurrency markets, highlighting the importance of monitoring market trends and investor sentiment.
FTX And Alameda Research Moves Ethereum Out Of Their Holdings
On-chain data reveals interesting insights into the actions of major players in the Ethereum ecosystem. FTX and Alameda Research wallets have been observed frequently moving ETH out of their holdings ahead of market downturns.
Over the past 15 days, these entities deposited 6,500 ETH ($24.57 million) to Coinbase in seven transactions, coinciding with five out of seven instances of market dips.
#FTX and #Alameda wallets appear to frequently move out $ETH ahead of a dump!
In the past 15 days, FTX and Alameda Research have deposited 6,500 $ETH ($24.57M) to #Coinbase at ~$3,780 via 7 transactions.
And the market dipped following 5 out of 7 transactions (pic 👇)!… pic.twitter.com/STOtHBDChE
— Spot On Chain (@spotonchain) March 15, 2024
Additionally, FTX and Alameda Research have transferred $6.26 million worth of various assets, including ALI, GAL, TONCOIN, WAVES, OHM, HGET, TLM, and MTA, during the same period. These movements suggest strategic portfolio adjustments by prominent market participants, potentially signaling their anticipation of market movements.
Despite short-term price fluctuations, Ethereum’s network improvements and growing ecosystem continue to attract interest from investors and developers alike, underscoring its significance in the broader cryptocurrency landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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