Ethereum Gas Fee Surges Due To Meme Coin Activity
The cryptocurrency market has been buzzing with excitement as meme coins like Shiba Inu, Pepe, and Floki continue to skyrocket in value on the Ethereum blockchain, driving up network activity and fees. ITB data reveals that PEPE has seen an incredible 600% return in February alone, with its gains further climbing to 800% in the last 30 days. Floki has also surged by 800% during the same period.
Shiba Inu, another popular meme coin, has experienced a remarkable 275% increase in the past month, hitting a high of $0.00004456 on March 5. The surge in Shiba Inu’s price was fueled by a 2,000% spike in new addresses, peaking at 21,000 new addresses on March 5.
With Shiba Inu now closing in on Dogecoin’s market cap, the competition in the meme coin space is heating up, attracting more traders to Ethereum’s decentralized exchanges (DEXs).
The surge in meme coin activity has driven trading volumes on Ethereum DEXs up by 40% to $20.74 billion in just a week, providing ample opportunities for Ether traders.
As a result of this heightened activity, Ethereum’s gas fees have seen a significant increase, reaching an average of $28 this week. Daily gas fee expenditures hit $38.02 million on March 5, the highest since May 2023.
Total crypto market cap is currently at $2.5 trillion. Chart: TradingView
Ether To Keep Benefiting From Meme Coin Activity
Ethereum’s gas fee spending has hit an annualized rate of $10 billion, marking a significant milestone for the network. This surge has propelled Ethereum’s price over $4,000 for the first time in two years.
The recent activity on the Ethereum network has resulted in a reduction of Ether’s total supply, with 33,000 ETH worth over $125 million being burned. This fee-burning mechanism is paving the way for Ethereum to potentially break its all-time high in the near future, following in Bitcoin’s footsteps.
Featured image from Pixabay, chart from TradingView
