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There needs to be more correlation between the latest Ethereum (ETH) price growth and its overall on-chain activity. According to recent insights from crypto analytics service provider Glassnode, slowing network activities are witnessed despite the relatively lower transaction fees.
For deeper reference, the Glassnode data showed that during the Shanghai upgrade event in April, which preceded a similar rally in ETH markets, gas prices rose by 78%, compared to the 28% increment recorded thus far this week.
Despite the recent rise in #Ethereum prices, network activity has not experienced a significant boost with gas prices remaining relatively low.
— glassnode (@glassnode) July 5, 2023
For comparison, during the Shanghai upgrade in April, which preceded a similar rally in ETH markets, gas prices rose by 78%, compared… pic.twitter.com/fIvaCAsVJt
This implies that Ethereum users should be more incentivized to use the protocol as they will pay relatively less for transactions.
Ethereum is trading at a price of $1,904.93, down by 2.64% over the past 24 hours, a bearish growth that has been cleared away with the change 2.60% over the trailing seven-day period. The reduced on-chain or network activity is also bolstered by total Ether coins locked on smart contracts, which has plunged from the year-to-date period.
Ethereum maintains its luster
Despite the gloomy outlook in the network activity of the protocol, Ethereum remains the biggest smart contract hub around in terms of overall liquidity. That activities are low does not necessarily impact the current stance of analysts which affirms that cryptocurrency is building a bullish moment.
Though there are different aspects that make up the Ethereum blockchain, as it concerns the generated interest in stacking up the coin, whales are showing prominence with large transactions breaking new bounds by the day.
Ethereum has maintained a solid position as the second-largest cryptocurrency by market capitalization. The Ethereum developer community has been working assiduously to introduce a number of initiatives that will bolster the usability and security of the protocol. One of the new initiatives is the new token standard ERC-7265 which aims to prevent the hacking of DeFi protocols as we saw recently in the case of Poly Network.
Vladislav Sopov
Tomiwabold Olajide