Ethereum

Base

Optimism

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
The Ethereum network has witnessed a significant surge in transaction volumes, hitting a new six-month high. Over the last week, the mainnet alone settled over $213 <a href="https://twitter.com/intotheblock/status/1720818649437540467" rel="noopener noreferrer nofollow">billion in transactions</a>, underscoring a robust uptick in on-chain activity. Layer 2 solutions such as Arbitrum, Optimism and Base have further buoyed this growth, adding another $16 billion to the aggregate volume. This uptrend reflects growing confidence and utility in the Ethereum ecosystem, suggesting an increasingly vibrant blockchain <a href="https://u.today/shiba-inu-burn-rate-jumps-535-with-quarter-billion-shib-burned" rel="noopener noreferrer nofollow">landscape</a>.
The spike in transaction volume has come with other noteworthy metrics, such as an increase in transaction fees. While higher fees can indicate network congestion and increased demand for block space, they also reflect the economic activity on the network. Investors and users should monitor these fees as they can affect the cost-effectiveness of conducting transactions on the Ethereum network. <img alt="Ethereum supply" data-entity-type="file" data-entity-uuid="411fabee-3dff-4040-8914-1237679d88f0" src="https://u.today/sites/default/files/inline-images/image_203.png">Source: <a href="https://ultrasound.money/" rel="noopener noreferrer nofollow">Ultrasound.Money</a>
Over the past week, the network burned an average of 855,000 ETH per year, a mechanism that could contribute to deflationary pressure on the token's supply over time. This "burn" counteracts the issuance of new <a href="https://u.today/btc-eth-bnb-and-ada-price-analysis-for-november-4" rel="noopener noreferrer nofollow">ETH</a>, aiming to create a balance that can benefit the asset's long-term valuation.
Looking at the daily chart, Ethereum's price action appears <a href="https://u.today/shibarium-eyes-new-milestone-of-4-million-transactions" rel="noopener noreferrer nofollow">bullish</a>. The price is maintaining a consistent pattern above both the 50-day and 200-day moving averages, indicating sustained buyer interest. The chart showcases a series of higher lows and higher highs — a classical uptrend signal. The recent price has surpassed local resistance levels, potentially aiming for higher price points.
The increase in on-chain activity, coupled with the reduction in supply due to the burn mechanism, are both fundamental factors that could be driving optimism in the market. The Layer 2 scaling solutions are also contributing to increased accessibility and efficiency, potentially drawing more users and transactions to the network.

Ethereum (ETH) Network Hits New 6-Month High, Here's How

U_Today

Other articles published on Nov 5, 2023

Fake Ledger Live App on Microsoft Store Results in $600,000 BTC Theft

Popularitas Crypto di Rusia Meningkat Drastis

Dan Morehead Predicts Stock Market Crash, Says Crypto To Outshine Equities, Real Estate and Bonds

Ethereum Surpasses $1,850 Level Again as Crypto Market Eyes $1.5 Trillion

Charlie Munger Says He’s Concerned About the Recent Surge in Bitcoin Price

Fake Ledger Live app sneaks into Microsoft's app store, $588K stolen

Join our free newsletter for daily crypto updates!