Ethereum Back On Track With 8% Rise
After a great start to August, Ethereum slowed in recent weeks. But yesterday’s uptick gives reason for optimism.
Covered:
- Eth Back On Track After Consolidation
- Bitcoin v. Ethereum
- EIP-1559: Success Or Failure?
Ethereum Back On Track After Consolidation
Ethereum opened the day up nearly 10% bringing its market cap over 400 billion USD. The world’s second biggest digital asset is trading around $3,400 USD.
Ethereum is poised for a great end to the month of August. The smart contract platform began the month struggling around the $2,400 level. But, the release of EIP-1559 on August 5th, and a return of NFT hype, propelled Ethereum back up to the 3k level.
However, expirations week saw the protocol go through consolidation trading around the 3k level. But with expirations over and NFT hype failing to subside, Ethereum is now trading the highest it has all month.
The outlook for the crypto appears bullish. Filip L of FX Street writes, “A breakout looks imminent, and it will be critical to see if ETH can run up again toward the higher boundary at $3,391.”
Bitcoin v. Ethereum
Recommended: Ethereum-based game Chicken Derby
For the year, Ethereum is up 350%, while Bitcoin is up 60%. However, the smart contract platform’s biggest competitors are gaining on the smart contract platform. Solana is up almost 6000% percent YTD, while Cardano is up almost 1500%.
Whereas, Bitcoin’s main competitors like Litecoin have yet to even get back to their 2017 highs this bull run.
EIP-1559: Success Or Failure?
During an appearance on Anthony Pompliano’s The Best Damn Business Show, Nic Carter (partner at Castle Island Ventures), criticized the smart contract platform’s EIP-1559 upgrade for not delivering cheaper gas fees.
“Fees on Ethereum, I would say, are structurally higher now,” Carter told Pomp. “Really what eip did was cut out the floor. In terms of fees. So when you’d have periods on Ethereum of downtime it would get pretty cheap to transact. The new EIP kind of just eliminated that and just set a higher threshold.”
Though Carter did add that the Eth dev team always maintained that the upgrade would not bring gas fees down. However, he also contends that the upgrade appears to have done more for the rent seekers on the network then it did for users.
Nevertheless, the gas fees don’t seem to be effecting transaction levels.
Credit: https://ycharts.com/indicators/ethereum_transactions_per_day
Eth transactions continue to be around there 3 month average of 1.199 million per day. Not to mention, NFTs on the chain are performing incredibly well.
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