This week, it has been observed that the Ethereum network is consistently experiencing high DeFi activity and network congestion. As a result, Ethereum is facing high transaction fees, which are impacting the total supply of the cryptocurrency. High transaction fees on the Ethereum network are typically associated with increased demand for transaction processing.
ETH experiences high DeFi activity and network congestion
However, if we look at the factors contributing to these High transaction fees Network congestion, DeFi activity, as well as NFT activity. The continuous high fees have become a focal point of discussion within the crypto community, raising questions about the scalability and efficiency of the Ethereum network.
One of the most notable consequences of the elevated fees is the significant amount of Ethereum being burned. In the last 7 days alone, more than 35,000 ETH have been “burned,” continuing a trend of more Ethereum being taken out of circulation than being newly issued, starting in early November.
Also Read: Ethereum’s regulatory status in question as commodity tag awaits
Peter Brandt highlights the critical level of ETH/BTC
Veteran trader and analyst, Peter Brandt made a post on X (Previously Twitter) that many people believe that Ethereum ($ETH) is not a similar store of value to Bitcoin ($BTC). They argue that holding Bitcoin is a better long-term strategy. The functionality and gas prices of Ethereum are criticized, leading some to view it negatively. Some even predict that Ethereum may not be listed as an asset in 10 years.
Along with this Brandt also shared a chart of ETH/BTC, he highlighted a crucial level of ETH/BTC which is around $0.048, and stated that if this level of ETH/BTC was breached then we may see the ETH funeral.
Currently, Ethereum is trading near $2,275, and in the last 24 hours, it has given a slight downside momentum of around 0.93%. However, if we analyze ETH in the longer time frame of 30 days ETH experienced over 12%. This upside momentum is lowered than top cryptocurrencies like Bitcoin and Solana.
However, if we look at the total locked value on the ETH network, it is significantly higher than all other networks. As of now, the total locked value on the ETH network is somewhere around $28.73 billion.
