According to the latest findings published in Cointelegraph Consulting’s biweekly newsletter, Ethereum (ETH) is showing promising signs of growth. The data suggests that Ether is on the verge of a significant increase in value.
Ethereum’s Transaction Volume Continues to Rise
The number of Ethereum transactions processed daily on the blockchain has seen a substantial increase from an average of 3.85 million in July to 4.75 million in August. This marks a significant milestone, with Tuesday’s transaction volume reaching a staggering 7.74 million – a 5-month high.
The Growing Chasm Between Bitcoin and Ethereum
For several months now, the gap between Bitcoin (BTC) and Ethereum’s transaction volumes has been widening. Ethereum’s daily on-chain transaction volume has reached an impressive 60% of Bitcoin’s, with the largest blockchain network experiencing its lowest transactional disparity in the past two years.
Record-Breaking Transaction Fees
While the surge in on-chain transactions is a positive sign for Ethereum, it comes at a cost. ETH transaction fees have been soaring, with an average fee of $5.83 registered on Monday, August 31st. In fact, the transaction fees on Ethereum have been consistently increasing throughout the past month, reaching a staggering $3.68 million in August.
The Impact of DeFi and Yield Farming
A significant contributor to the rising transaction fees is the growing popularity of decentralized financial protocols and yield farming platforms. The total value locked in DeFi has more than doubled over the last month, soaring from $3.99 billion at the start of August to $8.28 billion today.
Renewed Confidence in Ethereum
The renewed confidence in Ethereum’s short-term price potential is evident in the growing combined balance of the largest ETH addresses not owned by centralized exchanges. Over the past 14 days, this balance has grown by an additional 886,560 ETH (~$350,000,000 at current prices).
What Does This Mean for Ethereum?
The surge in on-chain transactions and transaction fees suggests that Ethereum is poised for gains. The growing popularity of DeFi protocols and yield farming platforms is driving the increase in transaction volume, which in turn is putting pressure on ETH’s price.
Will Ethereum Reach New Heights?
Only time will tell if Ethereum can maintain its momentum and reach new heights. However, with renewed confidence among major investors and a growing market for decentralized financial protocols, it seems likely that Ether will continue to rise in value.
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