This week, Ethereum fees have experienced a significant increase of 130%. The primary reasons behind this surge are the rising demand for DeFi and the growing use of smart contracts.
Reasons for Ethereum Fee Increase
According to Sentora, total fees for Ethereum reached $10.26 million, reflecting a substantial surge of 130.4%. This increase is attributed to the heightened demand from institutional investors for DeFi and the more active usage of smart contracts.
Institutional Market Shifts
Bit Digital has opted to shift its focus from Bitcoin mining to Ethereum staking and treasury operations. This plan includes selling its Bitcoin mining assets and reinvesting the revenue into Ethereum. The company is also preparing to issue shares to fund future Ethereum acquisitions, while its subsidiary WhiteFiber plans to go public.
Current Price and Future Projections
As of the time of publication, Ethereum was trading slightly down by 0.08% at $2,456. A period of consolidation in prices is expected; should the price rise above the moving averages, it might climb to $2,738 and then $2,879. Conversely, if Ethereum falls below $2,323, it may signal a retest of strong support at $2,111.
In summary, Ethereum is currently undergoing significant changes both in network fees and institutional investments. Price expectations remain varied, yet the overall trend continues to show strong interest in this crypto asset.
