As market optimism increases, the price of Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has not seen an appreciable rise.
Still, multiple important signals point to a possible rise in ETH just around here. One of Ethereum’s most important indicators this week saw a significant rise, which inspired investor hope.
Ethereum Price Rises
IntoThe Block claims that network fees for ETH have peaked since early June. The figures showed a shockingly 188.51% increase in fees, or $45.2 million. This fee increase points to more network activity, indicating a growing demand for Ethereum.
Given that ETH fees frequently follow price fluctuations, the rise in them is notable. Increased transaction volume on the ETH blockchain points to more people engaging with the network, thereby influencing long-term values.
Ethereum’s deflationary mechanism, which was introduced in 2021 with the London hard fork and EIP-1559, also depends critically on this fee increase. This update burns some of the gas fees collected from transactions, thereby reducing the overall ETH supply.
More ETH is being burned as more fees are collected, therefore creating deflationary pressure on the market a condition that can cause greater price rises. ETH is currently trading at $2,653, a slight rise of 1.06% in the past 24 hours.
Rising demand and increased trade volume which jumped by 16.08% to $17.38 billion are still creating positive momentum. Investors are growing more hopeful, and market sentiment is shifting toward higher prices.
