Ethereum, the world’s second most valuable digital currency, witnessed a strong jump in its price over the weekend. On Monday, ETH touched $1,770, which is its highest level since June 2022. Amid a price recovery, dormant Ethereum supply reached its highest level on record.
According to the data shared by Glassnode, an on-chain analytics platform, the ETH supply that was active almost 10 years ago touched an all-time high of 2.436 million on 8 August. In addition to ETH’s dormant supply, transaction fees (also known as the gas fees) on the Ethereum network are also plunging.
“As the Ethereum network gears up for The Merge, its gas fees are moving at record lows. The network’s gas fees have been at their lowest rates since 2020. This is really positive for the network. Gas fees became one of the banner issues of 2021 for Ethereum and its related crypto asset ether. Fees per transaction were running extremely high, around $40 per transaction on average, leading some analysts to call the network broken. But, cooling demand on the network has brought these fees back to earth,” Simon Peters, Market Analyst at eToro, said.
Profitability across the ETH network has increased in the past few weeks. In July, the profitable Ethereum supply touched 56%.
Bitcoin vs Ethereum
While BTC and ETH have both witnessed strong retail demand in the past few days, institutional investors preferred Bitcoin over the second-largest crypto asset.
“While much focus is put on The Merge, and the array of dApps and other protocols on the Ethereum blockchain, the growing Bitcoin Lightning network has much to offer too, according to a report from Arcane Research. Bitcoin’s Lightning Network is a really interesting aspect of the world’s largest crypto asset that often goes forgotten. But, Arcane’s study finds the number of payments has doubled in a year on the network and the value of payments has increased 400% (by dollar value),” Peters added.
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