While some traders were panic sold during the recent market-wide crash, Ethereum whales have continued to amass massive chunks. As a result, the number of large ETH holders has risen to a new all-time high. Meanwhile, ETH is also seeing serious intraday gains over BTC.
ETH whales keep buying
The second largest cryptocurrency started the new year at just over $ 700. Whether it was the massive use of the Ethereum blockchain in DeFi and NFT, the impressive bull run across the market, or maybe both, ETH got going in the months that followed.
This led to April 16 when the cryptocurrency hit a new all-time high of around $ 2,500. After that nearly 250% surge in less than four months, however, the stock market crashed on Sunday and ETH collapsed to a low of $ 1,950.
Data from analytics firm Santiment suggests that most retailers either sold a few servings or just sat and watched the volatility. In contrast, Ethereum whales went on a shopping spree.
The company pointed out that the number of such accounts with at least 10,000 ETH has increased rapidly since the beginning of the year. However, they have been particularly active since Sunday, which led to a new record.
Ethereum price compared to ETH whales. Source: Santiment
Update of Ethereum transaction fees
The high usage of the Ethereum blockchain mentioned above led to significant problems for the network, mainly related to scaling. As a result, the fees users have to pay when transacting on Ethereum have risen steadily since the beginning of the year and hit a new high in late February, CryptoPotato reported.
Since then, average transaction costs have decreased slightly, but are still above $ 20, according to Ycharts data. The drop is not enough for users, and the Ethereum developers have brought new proposals and upgrades to the network to bring the fees down even further.
The newest hard fork called Berlin came out last week. It initially caused some synchronization problems for the network nodes. While they were fixed, the upgrade didn’t cut fees significantly.
Some reports have also claimed that the controversial and long-awaited EIP-1559 update could also fail, due to arrive with the London Hard Fork in July 2021.
The paper argued that Layer 2 solutions are the only adequate options, at least until the migration from the Proof-of-Work consensus algorithm to the Proof of Stake (aka ETH 2.0) is complete.
Ethereum rises against BTC
It’s also worth noting that among all of the above, ETH posted notable gains versus Bitcoin today. As can be seen in the graph below, the cryptocurrency has risen almost 7% against BTC in the past few hours alone, which is a significant step forward.
ETH / BTC. Source: TradingView
SPECIAL OFFER (sponsored)
Binance Futures 50 USDT FREE Coupon: Use this link to register and get 10% off fees and 50 USDT when trading 500 USDT (limited offer).
PrimeXBT Special Offer: Use this link to register and enter the POTATO50 code to get 50% free bonus on every deposit up to 1 BTC.