Ethereum Transaction Fees Rising Hints At DeFi Season Round Two

Spread the love

Over the summer months, Ethereum transaction fees ran hot, causing the DeFi trend and Uniswap token swapping boom to finally run out of steam. But as transaction fees begin to pick up again after a period of inactivity and downtrend, could it be a signal that another phase of DeFi dominance is about to start?

DeFi Helps Take Ethereum To 350% ROI In 2020, With More Soon To Come

Ethereum is up over 350% in 2020, beating even the ultra-bullish Bitcoin at its own game. The altcoin saw explosive growth to start the year on the back of the total value locked in DeFi applications going parabolic.

As millions, and eventually billions, poured into DeFi, at the center of it all was Ethereum. The ERC20 tokens built on the cryptocurrency’s smart contracts enabled applications mimicking traditional banking, such as lending and borrowing.

Token swapping on decentralized exchanges and automated market-making platforms also added to the momentum, bringing dawn to platforms such as Uniswap.

ethusd

Ethereum at the peak reached 390% year to date returns on the heels of DeFi | Source: ETHUSD on TradingView.com

Because all of this required Ether to pay gas fees, Ethereum’s price followed the parabolic trajectory that TVL laid forth. But this summer, food tokens fresh out of the oven with little to no value, and outright scams began tarnishing the budding fintech trend.

RECOMMENDED READ:  New interview with an Axie Infinity NFT titled "I am a wonder"

However, as Bitcoin nears a new all-time high, there are some early signs that another wave of interest in DeFi is brewing.

Decentralized Finance Building Again, Or Are Fees Rising Due To ETH 2.0?

According to one crypto analyst, Ethereum transaction fees are picking up again after a period of stagnancy. As DeFi token prices were tanking, and all eyes on Bitcoin, users ceased moving around tokens between wallets or DeFi applications.

eth gas fees ether

ETH gas fees are rising again for the first time since the downtrend began | Source: Etherscan.io

But with it picking up again, another DeFi season could happen amidst a greater altcoin market “alt season.”

An altcoin season has been long overdue in crypto, with most altcoins still significantly below their all-time high prices, while Bitcoin is mere dollars away from its.

And as Bitcoin’s price per coin increases, the trend of investors looking to cheaper altcoins for profits, or to put BTC profits into, altcoins and DeFi tokens are likely to explode with far more intensity than the summer months demonstrated.

Only time will tell if the uptick in ETH transactions was the trigger, and in hindsight, if it was, it could be a helpful tool for analysts to pay attention to following future corrections for when DeFi will pick up again.

RECOMMENDED READ:  Same Technical Signal That Predicted Bitcoin’s 250% 2019 Rally Returns

Another theory points to the movement being due to new crypto users coming in, and Ether moving in preparation for ETH 2.0. Is another DeFi season just around the corner?

Featured image from Deposit Photos, Charts from TradingView.com

 618 Interactions,  2 today

READ ALSO:
Filecoin, IOTA, Enjin coin Price Movement Analysis for 11th April, 2021

The altcoin industry has been adjusting to the Bitcoin market's boom, and the valuation of most cryptocurrencies has risen in Read more

Stellar Lumens, Aave, Cosmos Price Movement Analysis for 11th April, 2021

Stellar Lumens moved within a bull flag pattern, but the pattern may be reversed if $0.58 -help is not sustained. Read more

Algorand, Bitcoin Cash, FTX Token Price Movement Analysis for 11th April, 2021

Algorand wasn't yet able to ascend above its horizontal channel. If the bulls can prevent a collapse in the coming Read more

Cardano, Bitcoin SV, Compound Price Movement Analysis for 11th April, 2021

Cardano observed a pattern of declining exchange rate, indicating that the market was likely in a delivery process. However, in Read more

Where are ADA, ETH,  DOT, and UNI price movements heading?

Based on price action in March and the first ten days of April, a pattern has appeared on the price Read more

Why this researcher believes the ‘hyperbitcoinization’ is not far from reality

Despite minor corrections over the last week, the Bitcoin price has been rallying higher, with the king coin once again Read more

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more

Crypto.com Coin, Hedera Hashgraph,Monero Price Movement Analysis for 11th April, 2021

Crypto.com Coin was under selling pressure at $0.23, but it still had help in the $0.19-$0.2 range. Hedera Hashgraph would Read more

Litecoin Price Movement Analysis for 11th April, 2021

Since the beginning of the year, the price of Litecoin has increased significantly. LTC was returning 93 percent year to Read more

Ripple’s CTO comments on XRP’s greatest achievement.

Bill Gates made a remark a few years ago claiming that digital currencies are the future of banking. With technologies Read more

Chainlink, BitTorrent, Elrond Price Movement Analysis for 11th April, 2021

Chainlink traded in a narrow range of $33.1-$31.2, with low volumes working towards a bullish short-term result. BitTorrent Token was Read more

Leave a Reply

Contact Us