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Toward the end of April, Ethereum experienced a huge bullish week. After a recent fall in mid-April, ETH has been able to outperform BTC, growing by 34% as of press time. Though Bitcoin was still consolidating below the $60,000 mark, Ether set a new all-time high.
Surprisingly, the on-chain metrics have diverged in terms of indication from previous highs, as the biggest altcoin crept closer to the $3,000 mark.
Less Congestion for ETH users?
In terms of profitability, the rising price of Ethereum led to the most number of addresses in profit to date, with the count rising up to 57.8 million. For context, during the start of 2020, it was less than 20 million.
Surprisingly, despite the increase, Ethereum miner income from fees fell to a new 4-month low of 29.5 percent. By mid-April, the index had risen to more than 50%. The average fee charged has also decreased, falling to $10.55. It was more than 22 dollars on April 19th.
One of the primary factors for the fee decrease may be related to the latest 4-month low in median gas prices. The cumulative decline in April may have minimised transaction congestion on Ethereum, allowing the market to carry out consistent transactions without interruption. The last week of April saw an increase in transactions on average.
Higher transactions on Ethereum flourishing Altcoins?
Falling gas prices are a boon for DeFi properties that run on Ethereum. AAVE, a DeFi lending company, has been one of the primary winners of the recent fee reduction.
According to data, AAVE’s price is up by 54% over the past week, reaching its previous range of $500 for a brief period. Its on-chain fundamentals pictured improvements as well.
According to Glassnode, the number of receiving addresses has been at a monthly peak for the past week, which was last seen in March. The number of mailing addresses exemplified a related characteristic. In the process, the total transaction volume on AAVE surpassed $30 billion.
Wrapped Bitcoin, or WBTC, is another currency that has likely risen in value as a result of both Ethereum and Bitcoin. WBTC is an Ethereum-based ERC20 currency that is pegged 1:1 to Bitcoin. The rising valuation of WBTC benefits ETH by bringing more supply from the BTC ecosystem to the DEXs and financial applications built on Ethereum.
With the number of transfers going up for WBTC for the first time since March, the fundamental improvements are all visible for these altcoins during Ether’s recent price jump.
Can this particular rally continue?
The spot market for Ethereum is currently very active, and passing the $3000 mark which result in another flurry of deposits for ETH. In the case of altcoins, it is obvious that low gas prices are causing these assets to surge based on fundamentals. Maintaining the same momentum will be dependent on overall market sustainability through a time of declines, and higher consolidation can enable the assets to recover alongside Ether to a new high.