Key Points
- Ethereum’s gas prices have dropped, but the fees paid to validators have increased.
- Despite a decrease in Ethereum’s price, the Network Growth has seen a significant surge.
Ethereum [ETH] was greatly affected by the recent market downturn, with its price falling below $3400.
Low Ethereum Gas, High Fees
While the price of Ethereum gas has declined, Ethereum has still outperformed other networks like Solana [SOL] and Tron [TRX] in terms of fees paid to validators.
Despite the drop in gas price, the high validator fees suggest that Ethereum’s network usage remains strong.
Even with lower fees per transaction, a higher volume of transactions could lead to more total fees for validators.
However, these high validator fees might not be enough to counterbalance the overall price drop of Ethereum.
Correlation to Bitcoin
At the time of writing, ETH had dropped by 4.14% in the last 24 hours, possibly due to its correlation with Bitcoin (BTC), which also saw a significant fall.
Despite Ethereum’s price decline, many holders appear to be in it for the long term, with the average holding time being 2.3 years.
This long-term view is reinforced by the fact that actively traded coins are still held for an average of 2 months, indicating a reluctance to sell.
The length of time coins are held provides valuable insights into investor confidence.
Longer holding periods suggest investors see potential in Ethereum’s long-term future and are comfortable holding their assets.
On the other hand, frequent trading activity may suggest a focus on short-term gains and less faith in the market’s future.
On-chain Data
Ethereum’s Network Growth has seen a significant increase in the past few days.
Many new addresses were interacting with ETH at the time of writing, indicating a large number of addresses were interested in purchasing ETH at the current discounted rates.
Furthermore, the speed at which ETH was trading has also increased, suggesting a surge in the frequency of ETH transactions.
