Ethereum’s transaction fees have hit their lowest since 2020 due to reduced ETH prices and network upgrades. Daily transaction counts remain strong, with notable increases in DEX activity. While retail investors are selling off, whale accumulation and long-term holder activity have surged, indicating a shift in market strategy and confidence. Ethereum staking participation has also reached new heights, underscoring commitment among long-term holders.
Ethereum’s transaction fees have recently declined to their lowest levels since 2020, reflecting noteworthy changes in network activity and performance. Although the market has shown volatility, the decreased transaction costs signal a shift towards more accessible usage of the Ethereum network. A significant contributor to this trend may be a discount in ETH prices, alongside potential benefits from the Pectra upgrade, which aimed to enhance transaction efficiency.
In April, Ethereum recorded a substantial increase in daily transactions, peaking at 1.43 million on April 7th, surpassing previous highs in recent months. This surge demonstrates a robust network activity even amid bearish market sentiment, with steady transaction volumes remaining above 1 million daily. Moreover, decentralised exchange (DEX) activity on Ethereum has sustained itself, with the volume registering at $1.47 million, indicating continued engagement despite previous highs declining.
ETH’s price has rebounded back above $1,500 from a low of $1,383, even as some investors speculated about a possible drop below $1,000 amidst challenging conditions. Despite still being discounted by 61% from its December peak, a calmer sell-off phase has encouraged accumulation. Whales have notably increased their holdings, now controlling 46.04% of the total supply, suggesting a transition from weak market participants to stronger, long-term holders.
Data indicates that retail investors are pulling back, as evidenced by a drop in their ETH holdings from 10.69% to 9.34% of total supply. In contrast, long-term holders have reached an all-time high of 112.63 million ETH, confirming a trend of accumulation during volatile conditions. The rise in staking activity, with over 223,520 addresses participating, further exemplifies the growing confidence among long-term holders, contributing to the overall stability and potential upward momentum of the Ethereum network.
