NEWSLETTER
Meme coins have skyrocketed to new prices since early March, boosting blockchain activity in the process. This recent frenzy has seen ethereum gas fees hit two-year highs this week.
IntoTheBlock, a leading on-chain analytics provider, announced this new milestone in a recent post on social media platform this week, bringing the annualized rate to the highest point since early 2022.
ethereum's $190+ million in weekly fees puts it at an annualized rate of over $10 billion for the first time since early 2022.
Due to ethereum's fee burning mechanism, this also has an impact on supply, reducing it by 33,000 eth (~$125 million) this week. pic.twitter.com/iAibEvzh4j– IntoTheBlock (@intotheblock) March 8, 2024
ethereum Gas Fee Increases Due to Meme Coin Activity
Recent market dynamics have seen crypto investors flocking to ethereum-based meme coins like Shiba Inu, Pepe, and Floki. According to ITB dataPEPE was the best performer in the recent meme coin rally, leading with a return of over 600% in February.
PEPE's gain has been brought forward into the new month, and the cryptocurrency is now up 800% in a 30-day period. Floki is up there too. by 800% in the same period of time.
Shiba Inu It is currently up 275% in the last 30 days, reaching a high of $0.00004456 on March 5. This increase in Shiba Inu price was primarily driven by a 2,000% increase in new addresses from the February average, peaking at 21,000 new addresses. March 5.
Now, Shiba Inu is less than $4 billion behind schedule Dogecoin in market capitalization and is in the about to challenge Dogecoin like the biggest meme coin.
The increased activity in the meme coin has benefited many Ether traders as they have attracted more traders to decentralized exchanges (DEX) on ethereum, where trading volumes have seen a 40% increase over the week to $20 .74 billion, according to ethereum” target=”_blank” rel=”noopener nofollow”>DeFiLlama data.
The price of gas rates has also increased in tandem. According to ITB, average gas rates on the blockchain increased as much as $28 this week. Interestingly, the total money spent daily on gas fees reached $38.02 million on March 5, the highest recorded since May 2023.
Total crypto market cap is currently at $2.5 trillion. Chart: TradingView
Ether will continue to benefit from Meme coin activity
The total gas fee spent on the ethereum network is now at an annualized rate of $10 billion. The last time gas fees reached this level was before the cryptocurrency market crash in mid-2022.
This increased activity allowed ethereum record a new milestone above the $4,000 price level for the first time in two years.
Over the past week, the total supply of ethereum has been reduced due to the Ether fee burning plan, as 33,000 eth worth over $125 million were withdrawn from circulation. ethereum now has a clear path forward bitcoin-hits-new-all-time-high-surging-past-70000-for-the-first-time-in-history/” target=”_blank” rel=”noopener nofollow”>following in the footsteps of bitcoin and register a eth/ethereum-price-rally-4k/” target=”_blank” rel=”noopener nofollow”>new all-time high In the next weeks.
Featured image from Pixabay, TradingView chart
