In a remarkable divergence from the rest of the crypto market, Ethereum (ETH) has seen its price rise by over 3.56% in the last 24 hours, with the possibility of breaking the $2,000 mark. At the time of writing, ETH is trading at $1,966 and boasts a market capitalization of $236 billion.
This recent bull run coincides with a notable increase in active deposits on the Ethereum blockchain, reaching a 1.5-year high. According to on-chain data provider Santiment, a significant number of crypto traders are converting their PEPE profits into ETH, resulting in exchange addresses on the network hitting their highest level since November 2021. This showcases ETH’s ability to decouple from the crypto market and move closer to the $2,000 threshold.
The surge in the oft-discussed memecoin, PEPE, has made a splash in the crypto world. Its trading volumes have skyrocketed to over $2.7 billion, placing it just behind Bitcoin (BTC) and Ethereum (ETH) in terms of volume. However, this frenzy has driven the daily median gas fee on the Ethereum blockchain to a new 12-month high of 87 gwei. To put this in perspective, since PEPE’s launch on April 18th, the gas fee on Ethereum has leaped by 50%. This is according to Dune Analytics pseudonymous analyst @hildobby, who also highlights PEPE’s unstoppable price rally.
Enthusiasm around the Pepecoin (PEPE) has even propelled Uniswap’s pepecoin-wrapped ether (PEPE-WETH) liquidity pools to become the most active by the number of transactions. Over 413,283 PEPE Uniswap transactions have taken place, burning more than $10 million in gas fees.
However, caution is advised as Vitalik Buterin and the Ethereum Foundation have recently offloaded over 15,000 ETH, which could signal an impending sell-off for Ethereum. With crypto markets being notoriously volatile, it is essential to conduct thorough market research before making any investment decisions. The current momentum for Ethereum may prove fruitful, but the risk of a sharp turnaround is ever-present.
In conclusion, Ethereum’s decoupling from the broader crypto market and its impressive price rally make it an asset to watch closely. Its relationship to the recent Pepecoin frenzy and consequent rising gas fees serves as a reminder of the potential rewards and risks in the cryptocurrency space. Investors should approach this as an opportunity for growth but always remain mindful of the potential for rapid reversals.
Source: Coingape
