Here are the probable reasons why Ethereum hit two consecutive all-time highs in a single day
On Nov. 2, the second-largest cryptocurrency, Ethereum, soared first to the historic peak of $4,477. Hours later, Vitalik Buterin’s native blockchain cryptocurrency reached $ 4,643.
This double price rise may have been caused by the following reasons.
Massive increase in active ETH addresses
Data shared by the popular on-chain analytics team Santiment shows that over the past four weeks, the number of active Ether addresses has increased by 45%. This, according to the analytics team of the company, shows a spike in the coin’s utility.
Ethereum’s history now goes back six years; it was created after the Bitcoin clones Litecoin and Dogecoin, with Mike Novogratz being the first Wall Street investor, who in 2015 bought 500,000 ETH from Vitalik Buterin at a price of just under $ 1.
Besides, according to Chinese crypto journalist and blogger, Colin Wu, Chinese traders are beginning to use Ethereum as a hedge against inflation. Thus, ETH is gradually starting to compete with Bitcoin in this area.
Besides, Ethereum remains the leading platform for users of dapps, smart contracts and NFTs.
744,020 ETH burned since August 5
According to watchtheburn.com, since August 5 – the day the EIP-1559 (also known as London hardfork) upgrade was deployed with the burn mechanism for ETH fees – over 744,000 Ethers have been burnt.
That is the equivalent of an astounding $3,424,606,965.
The implementation of the ETH elimination mechanism that came with the London hardfork began to make Ethereum a deflationary cryptocurrency.
Since the introduction of EIP-1559, Ethereum has risen approximately 33%, becoming more and more deflationary.
A more likely reason is that CME announced the upcoming launch of micro Ethereum futures in early December.
Ethereum hashrate soars to a new ATH
As covered by U.Today, the Ethereum hashrate reached a lifetime peak of 812,768 GH/s on Tuesday, Nov. 3.
Even though ETH fees are now burned, as noted above, miners continue to be attracted to the Ethereum network because they can be “tipped” by network users who want their transactions verified faster – a mechanism similar to that used by Bitcoin users.
