Amid concerns surrounding the Ethereum gas fee dropping to five-year lows, the ETH transaction count on the blockchain is nearing its all-time high. This shows the robust demand thereby building confidence among investors.
Ethereum Transactions on the Rise
Since April this year, just after the Dencun upgrade, the Ethereum gas fee has stayed below 2 Gwei. As a result, the ETH inflation has surged by 228,000 in the past four and a half months thereby putting the annual inflation at 600K with an inflation rate of 0.5%.
Several market analysts have been stating that this inflation has put pressure on the ETH price surge. Popular crypto trader Daan Crypto addressed the concerns of Ethereum network turning “dead” stating that the Ethereum transactions remain near its all-time highs.
He added that the reduced gas fees are largely a result of network improvements and scaling efforts, not a sign of declining activity.
Furthermore, Vitalik Buterin has also come out defending the platform and addressing concerns regarding the weakness in the ecosystem. He listed several developments such as the Layer 2 platforms – Optmism and Arbitrum – hitting new milestones with L2 transaction fees dropping all the way under $0.01.
He further said that the cross-L2 user experience has significantly improved, eliminating the need for manual network switching. Buterin also noted advancements in zero-knowledge (ZK) tooling.
Additionally, advancements in STARKs highlight the long-term strategy for security and decentralization.
BlackRock’s ETHA Hits Fresh Milestone
Although the spot Ethereum ETFs witnessed outflows for five consecutive trading sessions, the BlackRock Ethereum ETF ETHA continues to make significant progress. It is registering more than $1 billion in inflows in less than a month of launch.
This puts BlackRock’s iShares Ethereum ETF (ETHA) in the list of top-seven ETF launches this year, noted ETF Store President Nate Geraci.
ETH price continues to flirt around $2,600 levels with a tight fight between the bulls and the bears. Any macro catalyst and interest rate cuts can take ETH above $3,000.
