Meme Coin Madness Sends Ethereum Fees To 2-Year Highs

Meme cash have ballooned to new costs because the starting of March, boosting blockchain exercise within the course of. This latest frenzy has seen Ethereum fuel charges surging to two-year highs this week.

IntoTheBlock, a number one on-chain analytics supplier, introduced this new milestone in a latest submit on social media platform X. Knowledge from ITB signifies that Ethereum mainnet’s income from community charges reached $193 million this week, pushing the annualized charge to the best level since early 2022. 

Ethereum’s $190M+ in weekly charges places it at an annualized charge of over $10B for the primary time since early 2022.As a consequence of Ethereum’s fee-burn mechanism, this additionally has an impression on the provision, lowering it by 33k ETH (~$125M) this week. pic.twitter.com/iAibEvzh4j

— IntoTheBlock (@intotheblock) March 8, 2024

Ethereum Gasoline Payment Surges Due To Meme Coin Exercise

Current market dynamics have seen crypto traders flocking to Ethereum-based meme cash like Shiba Inu, Pepe, and Floki. In response to ITB information, PEPE has carried out one of the best within the latest meme coin rally, main with greater than a 600% return in February.

PEPE’s acquire has been introduced ahead into the brand new month, and the crypto is now up by 800% in a 30-day timeframe. Floki can be up by 800% in the identical timeframe.

Shiba Inu is presently up by 275% up to now 30 days, reaching as excessive as $0.00004456 on March 5. This surge within the value of Shiba Inu was principally fueled by a 2,000% surge in new addresses from the February common, peaking at 21,000 new addresses on March 5.

Now, Shiba Inu is lower than $4 billion behind Dogecoin in market cap and is on the verge of difficult Dogecoin as the largest meme coin.

The heightened exercise on meme coin has benefited numerous Ether merchants, as they’ve drawn extra merchants to decentralized exchanges (DEXs) on Ethereum, the place buying and selling volumes have seen a 40% improve over the week to $20.74 billion, in accordance with information from DeFiLlama. 

The value of fuel charges has additionally surged in tandem. In response to ITB, common fuel charges on the blockchain rose to as excessive as $28 this week. Curiously, the overall cash spent on fuel charges day by day reached $38.02 million on March 5, the best recorded since Might 2023. 

Complete crypto market cap is presently at $2.5 trillion. Chart: TradingView

Ether To Hold Benefiting From Meme Coin Exercise

The full fuel charge spent on the Ethereum community is now at an annualized charge of $10 billion. The final time fuel charges reached this excessive was earlier than the crypto market crash in the midst of 2022.

This heightened exercise allowed Ethereum to register a brand new milestone over the $4,000 value stage for the primary time in two years.  

Over the previous week, Ethereum’s whole provide has shrunk as a result of Ether’s fee-burning scheme, as 33,000 ETH price over $125 million had been taken out of circulation. Ethereum now has a transparent path in following Bitcoin’s footsteps and register a new all-time excessive within the coming weeks. 

Featured picture from Pixabay, chart from TradingView