Santiment, an on-chain analytics company, reports a reduction in Ethereum’s average costs. It claims that Ethereum transaction rates have returned to normal after peaking at $14 in early May 2023.
Santiment sees this as a benefit for the Ethereum network since increased utility results from lower prices.
GameFi and staking are two new industries that have emerged in the Ethereum ecosystem in the last two years, according to recent study by Glassnode. The level of investor interest in each area has varied.
DeFi is among Ethereum’s most well-known use cases. GameFi grew in popularity and almost exceeded DeFi in the middle of 2022. The stake business has expanded since 2023 began.
Gas consumption for DeFi usually doubles during occasional surges in gas usage, which occur regularly. Investors typically recollateralize, deleverage, or liquidate their on-chain margined holdings at times of extreme market volatility.
Due to holders choosing self-custody, ETH fees have decreased by 69% and the price of Ethereum on exchanges is at an all-time low of 9.9%.
Ethereum exchange balance hits all-time low
In a previous tweet, Santiment mentioned that more of the existing supply of both Bitcoin and Ethereum continue to stealthily shift into self-custody.
Although not always accurate, decreasing currencies on exchanges sometimes portend upcoming bull runs if given enough time to develop.
The quantity of Ethereum (ETH) on exchanges has decreased to levels last seen in the early days of Ethereum as staking consumes the available Ethereum.
Over 4.4 million additional coins have been deposited since the Shapella upgrade was added to the Ethereum network, indicating that major Ethereum investors are increasingly preferring to create passive income rather than liquidate their holdings.
