The price of the Ethereum cryptocurrency on Tuesday reached its highest level in 19 months against Bitcoin, as user activity on Ethereum rose to its highest levels in several years.
With the price of Ethereum (ETH) exceeding the $ 450 barrier, a huge purchase appeared on the major cryptocurrency exchange Bitfinex. Shortly thereafter, Ethereum made $ 270, its highest level in 19 months against Bitcoin (BTC).
Over the past two months, Ethereum has maintained strong bullish momentum fueling increased user activity on Ethereum.
and data from (EtherScan) show that the volume of daily transactions on Ethereum increased from about 420,000 transactions in January to more than 1.2 million transactions per day in August 2020. .
Why is the price of Ethereum rising and the demand for it constantly increasing?
The massive demand for UNICEF tokens and small decentralized financing (DeFi) tokens has created a steady demand for Ethereum. On the Ethereum blockchain network, users are required to use Ethereum to cover transaction fees, also called gas.
As a result of rising daily transactions, gas costs have led users to buy Ethereum to pay for network charges. Since early June, when the decentralized financing market began to witness explosive growth, it has increased the demand for Ethereum purchases.
According to data from Glasnode, a cross-chain market analysis firm, gas costs are rising very quickly, driving up mining revenues.
the company's researchers write: Ethereum miners have earned more than $ 500,000 in transaction fees in the past hour. This is a new one-hour record (anomalous transaction fees were excluded earlier this year).
and the continuing trend is unlikely to change in the near term as the solutions for expanding Layer 2 and Ethereum 2.0 are far away.
However, the market for decentralized finance is constantly expanding, leading more users to decentralized platforms, such as UNICEF. It remains to be seen if this will add more demand to buy on Ethereum throughout the month of September.
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