How can a decline in gas fees impact Ethereum?
The high gas fees of Ethereum ETH have been a barrier for users to use dApps on the network frequently or make smaller transactions. However, the recent drop in gas prices to 29,390 GWEI has revived the interest in Ethereum from the crypto community. Thus increasing the NFT activity on the network.
Over the past 24-hrs, there has been $58 million worth of transactions made in the NFT market of Ethereum. Meanwhile, it carried around 71,700 trades. Blur platform was involved in almost 70% of the Ethereum trading. The average trade amount was $1,206. Additionally, OpenSea carried 16% of the trading with an average trade amount of $335. This makes Blur a more favorable platform for trading Ethereum rather than OpenSea.
The interest in Ethereum is not limited to the users alone. Validators who are responsible for verifying transactions on the network are also interested in Ethereum. And their number has also been increasing by 6.22% Increase in validators was responsible for rising the revenue by 24.27%. This ensures the security and efficiency of the network for the validators.
Despite all the positive signals, the stakers remained unprofitable by 55% of Ethereum. This indicates that the rewards for staking are not distributed evenly and may depend on various factors.
The ETH addresses seem to be profitable.
The MVRV record of ETH suggests that most of the addresses holding ETH are in a profitable position at the moment. Thus incentivizing new users to buy Ethereum, expecting to make a profit as well.
Moreover, the concentration of whales of ETH has increased over the past month. Indicating that a small group of people own a significant amount of Ethereum But if the Whales decide to sell their holdings. It could increase the selling pressure leading to a large amount of selling pressure on the market resulting in a price drop.
The increase in the concentration has also led to a rise in the short positions against ETH, as investors anticipate a potential price drop.
The data from Coinglass also indicates that short positions against ETH have increased substantially over the past few days.