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Ethereum Surges to $45M in Weekly Fees, Highest in 3 Months

The rise in weekly fees indicates increased network activity, reflecting strong demand for Ethereum transactions and greater use of decentralized applications.

Avatar image of Jonathan Agozie Jonathan Agozie•September 30, 2024
Ethereum gas fee

According to a report from the blockchain analytics platform IntoTheBlock, Ethereum (ETH) has experienced a resurgence, reaching $45 million in weekly fees—the highest since June 10, 2024.

Users pay these fees to validators to facilitate and validate transactions on the network.

The surge in weekly fees suggests heightened network activity, indicating robust demand for Ethereum transactions and increased utilization of decentralized applications (dApps) on the platform.

ETH Price Surge Sparks Bullish Sentiment

Notably, Ethereum has also experienced a surge in price. The recent upward trend in ETH prices has boosted investor sentiment.

In just a few days, the percentage of Ethereum addresses in profit—those holding assets valued above their acquisition cost—rose from 59% to 69%.

Additionally, over 80% of the current ETH trading volume generates profit, signaling strong buying interest at key price points.

According to a recent CoinTab report, Ethereum has exceeded its pivot point for the first time since August, reviving hopes for further price increases. Traders have set sell orders at $2,900, anticipating a potential rally.

Meanwhile, Ethereum’s funding rate has turned positive, driven by increased buying interest from United States investors who have adopted a bullish stance on ETH.

The derivatives market is also reflecting this optimism, with more traders taking long positions, further pushing the funding rate into positive territory. At the same time, more ETH is being withdrawn from exchanges, signaling that investors are increasingly confident in Ethereum’s continued upward trajectory.

ETH Benefits From DeFi Activities

IntoTheBlock noted that Ethereum’s price performance and rising network activity contrast with Bitcoin’s view as a “digital gold” asset.

While Ethereum is benefiting from increased demand for decentralized applications and decentralized finance (DeFi) interactions, Bitcoin continues to dominate traditional financial narratives with its perceived role as a store of value and a hedge against economic instability.

Nevertheless, Bitcoin has also experienced an uptick in activity within the DeFi sector.

The analytics platform also highlighted Bitcoin’s expanding footprint in the DeFi sector, where only 1% of its total supply is now locked in DeFi protocols. The increase has been driven by rising demand for Bitcoin yield products, such as Coinbase’s new Bitcoin-pegged token, cbBTC. 

The introduction of cbBTC indicates a growing interest in utilizing Bitcoin within DeFi ecosystems, providing investors with more opportunities to earn returns.

Jonathan Agozie

Jonathan Agozie is a prompt engineer committed to crafting clear and technically sound content on blockchain, cryptocurrency, and Web3 technologies.