Ethereum Transactions Rise to a Seven Months High

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Ethereum transactions have risen to a seven months high of about 650,000 transactions a day and have sort of remained in that range.

That means they’re not far off from doubling since February’s low of 380,000 transactions a day, with a constant rise seen this month (pictured above).

A measure by Santiment called network growth which tries to establish how eth’s blockchain usage is growing also shows a continuous increase.

Ethereum Network Growth, March 2019.

Daily gas usage continues to be near all time high while fees remain at just about 1 cent per transaction.

Daily block rewards remain steady at circa 13,600 eth, down from ◊20,000 last month following a network upgrade to reduce new supply.

Google searches for ethereum continue to sort of go down. Price however has been sort of rising, passing $140 once more.

Ethereum’s price on hourly candles, march 2019.

Making sense of these figures is not very easy even if we limit ourself to just eth without considering any effect bitcoin’s price action might have.

The starting point could be the issuance reduction, which is still a very new thing kicking-in just four weeks ago.

That could now be starting to have some perhaps small effect. Assuming demand remains constant, then you’d expect price to increase if supply falls.

The rise in transactions, however, suggests demand has been rising. Yet if we look at the amount of value eth is moving on chain, $400 million a day, that has doubled but remains far below August’s circa $600 to $800 million and is more in line with October.

Price was obviously higher in August, at about $300, with a floor seen here as far as value movements are concerned:

Eth sent in USD, March 2019.

Eth has sort of processed about $300 million to $400 million a month for now quite some time even though price has fallen during that period.

This might suggest that there’s some use for ethereum which isn’t quite affected by price as these are in dollar amounts rather than in eth amounts.

What that use is exactly, isn’t very clear. Obviously perhaps international remittance and so on, everything bitcoin does. Then some dapps are now attracting a following. Then obviously it could just be speculation, people moving them in and out of exchanges or selling and buying peer to peer or Over the Counter (OTC).

If we had to guess it may be that some ethereans who perhaps left at the end of 2017, are now maybe returning again either to see how eth is doing, to check out its ecosystem and developments and/or perhaps because they think a bottom might have been reached.

The “masses” are not paying attention very much for now. Most of them have probably forgotten cryptos even exist. If they will be reminded, remains to be seen.

Copyrights Trustnodes.com

 

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