Ethereum gas usage reaches a new high in one year, helping the currency price continue to rise

According to AMBCrypto reported on February 16, Ethereum's transaction volume reached its highest level since July 2019. The price of Ethereum has doubled since the beginning of this year, reaching $ 272 as of press time.

ethereum-3818347_1280 (Image source: Pixabay)

Not only the price of Ethereum keeps rising, but the network usage of Ethereum is also rising. The number of active Ethereum addresses has reached its highest level since September 2019. The total number of active addresses increased by 26.7%, while the transaction volume also increased by 20.77%.

In addition, cryptocurrency analysis company Glassnode pointed out that Ethereum gas usage has also reached its highest point in four months.

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Ethereum Gas usage (seven-day average data), image source: Glassnode

The strong momentum of the Ethereum network fundamentals has pushed the price of Ethereum back above $ 270. At the key $ 360 position, Ethereum has encountered two obstacles. When the price of the coin hits this point for the third time, the price of Ethereum may break through and soar further.

The last time Ethereum's gas usage reached a high level was in September 2019. During this period, non-standard contracts and stablecoin Tether were the biggest contributors to gas consumption. This increase in gas usage has also re-ignited debate over the limits of Ethereum gas. Glassnode previously revealed:

Last week, more than 25% of transactions on the Ethereum network were used for the transfer of stablecoin Tether, which is significantly higher than the ratio of less than 1% in June last year. Ethereum transfers account for approximately 30% of total network transactions, and smart contract interactions account for approximately 45% of total transactions (most smart contract applications are DeFi).