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 current 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 current put up 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 fee to the best level since early 2022. 

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

— IntoTheBlock (@intotheblock) March 8, 2024

Ethereum Fuel Payment Surges Due To Meme Coin Exercise

Latest market dynamics have seen crypto traders flocking to Ethereum-based meme cash like Shiba Inu, Pepe, and Floki. In accordance with ITB knowledge, PEPE has carried out the very best within the current 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 also be up by 800% in the identical timeframe.

Shiba Inu is at the moment up by 275% previously 30 days, reaching as excessive as $0.00004456 on March 5. This surge within the worth 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 a number of 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, based on knowledge from DeFiLlama. 

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

Whole crypto market cap is at the moment at $2.5 trillion. Chart: TradingView

Ether To Preserve Benefiting From Meme Coin Exercise

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

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

Over the previous week, Ethereum’s whole provide has shrunk on account 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