- Ethereum’s gas fees spiked due to Binance’s Proof-of-Reserves endeavors
- Although activity on the network was up, sentiment towards Ethereum dropped.
The last few days saw a dramatic spike in Ethereum’s [ETH] gas costs and gas used. This large spike was due to Binance moving large amounts of Ethereum in their Proof-of–Reserves efforts.
Read Ethereum’s [ETH] Price Prediction 2023-2024
Ethereum propels forward
As can be seen from the image below, Ethereum’s gas fees reached new highs, soaring to 222 gwei. Wu Blockchain says this was due to:
“Binance consolidated funds from countless deposit addresses to the Binance14 hot wallet in preparation for the next stage of POR check.”
Binance generated 889 ETH gas fee and transferred over 437,000 funds. ETH In order to validate its PRoof-ofReserves and maintaining the faith of its customers
In preparation for the next stage in POR check, the Ethereum Gas fee once reached 222 Gwei. Binance combined funds from many deposit addresses into the Binance14 hot wallet. Binance has now completed its BTC reserve, and is beginning an ETH check. https://t.co/Tan4AEjNMn pic.twitter.com/ylgUZ40pYa
— Wu Blockchain (@WuBlockchain) December 10, 2022
This spike in gas fees could have had negative consequences. High gas fees can impact retail investors and negatively affect the sentiment towards Ethereum.
The chart below shows that Ethereum had a negative weighted sentiment. However, large addresses have continued to accumulate in spite of this. ETH.
The chart below illustrates that Ethereum holdings by large addresses have increased in value significantly since 16 November. This support could be sustained by large addresses. Ethereum‘s growth.
Source: Santiment
Another positive for Ethereum would be the spike in the network’s activity.
The Ethereum network saw a significant increase in active addresses over the past 2 weeks to reach 33.3k at the time this was written.
The aforementioned information was accompanied by the fact that 22k addresses had more than 0.01 ETH, a four-month record, according the ELIGIBLE! Glassnode.
📈 #Ethereum $ETH The number of addresses that hold 0.01+ coins just hit a 4-month high at 22,444,478
View this metric:https://t.co/XXb0u19ouH pic.twitter.com/H4UvSmgU16
— glassnode alerts (@glassnodealerts) December 10, 2022
Are investors ‘short’ sighted?
Despite support being shown by large addresses and the high activity on Ethereum’s network, traders were not confident in Ethereum’s growth.
The below image shows that Ethereum’s funding rate declined. The result was that traders who took short-term positions against Ethereum had increased in their willingness to pay long-term traders.
Source: Crypto Quant
It is not yet clear if the short sellers will be able take a profitable trade.
As of the date of writing ETH The price was $1,272.6 Its price has risen by 0.62% over the past 24 hours.