Although the entire crypto industry has an abundance of digital assets, most traders will only pick the two major cryptocurrencies, namely Bitcoin and Ethereum. Although Bitcoin is said to have amassed most of its value, Ethereum is currently going through an exchange operation to continue making new highs.
Ethereum Gas Fee Plunges to $31.73
In a recent report, gas fees for Ethereum have fallen significantly in the past five days. This is happening because Ethereum has soared to more than $4,700. Ethereum is currently sold for $4,717.27, and its average transaction fee is around $31.73. Compared to the $56 transaction fee last Tuesday, the current gas fee shows a significant 33.5% reduction. In addition, Ethereum’s hash rate (a measure of total computing power) continues to hit new highs.
On Monday last week, the asset’s hash rate was around 812,000 GH/s, but a closer look on Wednesday revealed that it had increased to around 821,000 GH/s. However, while the hash rate of the second digital asset is still increasing, lowering gas charges can only mean one thing: the trader did not buy the asset. Another number that supports this statement is the trading volume of cryptocurrencies, which has declined significantly over the past four days.
Ethereum Prepares for its Migration to Proof-of-Stake
In the past few weeks, the number of blockchain transactions on Ethereum has been falling. For example, on Wednesday, $21 billion in transactions were carried out through the chain. As of yesterday, that number has deepened and the network’s total transaction volume is $14 million. During this period, the market value of digital assets also fell, with a loss of $10 billion in the past week.
Currently, the token’s market value is just over $530 billion. While this is worrying, Ethereum supporters still find solace in the popular NFT market, which is promoting higher network adoption. The Chicago Mercantile Exchange also announced that it would allow traders to trade Ethereum derivatives. This opportunity will allow traders to trade a small portion of the Ethereum futures.
Ethereum is also working on rolling out its 2.0 framework, which will result in faster transaction cycles and lower gas fees. Since Ethereum recently launched its beacon chain, it will set the framework for The Merge. The merger will introduce a proof-of-stake mechanism that will cover the proof-of-work system currently in use. All of this suggests that merchants can now postpone buying Ethereum and increasing the hash rate can mean reducing the load on the blockchain.