Ethereum gas price hit a 10-month high.
The ETH price was influenced by the profits collected by meme traders.
The return of seemingly lucrative memes has helped Ethereum [ETH] record a whooping 73% rise in gas costs. During the week ending April 22, several meme cryptocurrencies caught the attention of the crypto community.
How many Worth 1,10,100 ETHs today?
Blame the resurrection
Coincidentally, these highly volatile assets, which were mostly traded on the Arbitrium [ARB] network, engaged in an exchange of ETH. According to IntoTheBlock data, the surge in gas consumption brought Ethereum $66.7 million within the time frame.
Ethereum costs rose a whopping 73% this week, with meme coin speculation driving gas costs.#ETH #PEPE pic.twitter.com/5U6xBMVFur
— IntoTheBlock (@intotheblock) April 22, 2023
It is worth noting that increased activity on the Ethereum network can cause congestion and drive up costs.
While memes are considered high-risk assets and are subject to sudden ups and downs, there were a number of them that showed incredible performance over the past week.
Some of these recently released memes include PEPE, whose market cap hit 100x in a matter of days. ArbDogeAIs [AIDOGE] value increased by more than 7,000% last week. And lately the focus has been on REKT.
While most of these assets are currently going through a correction, they played an important role in the rise of ETH circulation. At the time of writing, Santiment revealed that the circulating supply of ETH increased significantly as of April 12.
Source: Sentiment
While the momentum cooled, the surge meant a lot of ETH was used in trades over the past seven days. However, there is also a decrease in average gas consumption.
Gridlock and reversals
According to data from Santiment, the average gas used has dropped to 43.99 Gwei. This reflected how traders have been holding back from exchanging more ETH for other cryptocurrencies.
Interestingly, Glassnode reported on April 23 that Ethereum’s average gas price hit a 10-month high. In a number of cases, ETH gas fees rise when cryptocurrency demand is high. So the price has been increased for the average user to avoid constipation.
📈 #Ethereum $ETH Median gas price (7d MA) just hit 10-month high of 47,077 GWEI
View stats: https://t.co/6QGDfZoULY pic.twitter.com/WRPXRlkLG6
— glassnode alerts (@glassnodealerts) April 23, 2023
Meanwhile, ETHs change inflow disappeared at the time of going to press. The metric, which determines how much of the altcoin flows to exchanges, was 18,200.
But there were several spikes throughout the week that agreed with increased activity since the memes began trading on decentralized exchanges (DEXs).
Realistic or not, here it is The market cap of ETH in BTC terms
There was a similar situation with the stock market outflow. At the time of writing, the stat stood at 5,563. But with a big difference between the outflows and inflows, this condition suggested more of an ETH selling pressure.
Source: Sentiment
As expected from cryptocurrencies under the meme bracket, the hype surrounding the aforementioned tokens has dropped. And because of their volatile nature, investors may want to rethink their risk appetite.
This post How Ethereum recorded a massive increase in gas costs amid increased meme trading
was published first on https://ambcrypto.com/how-ethereum-recorded-huge-hike-in-gas-fees-amid-heightened-meme-trading/
