Ethereum Network Fee Skyrockets 130%, What's Behind It?

According to Sentora (formerly IntoTheBlock), Ethereum fees have skyrocketed over 130% this week. Per a graphic shared by Sentora alongside its tweet, Ethereum's total fees came to $10.26 million, representing a 130.4% surge. The growth is being driven by institutional DeFi demand and increased smart-contract usage.

In a major institutional shift, Bit Digital is moving its focus from Bitcoin mining to Ethereum staking and treasury operations. The corporation intends to sell its Bitcoin mining assets and reinvest the revenues in Ethereum. Bit Digital will also issue shares to fund future Ethereum acquisitions, and its subsidiary WhiteFiber is planning to go public.

According to the most recent CoinShares report, digital asset investment products experienced their 10th consecutive week of inflows, totaling $1.24 billion last week.

Ethereum earned its ninth consecutive week of inflows, totaling $12 million and bringing the total for the run to $2.2 billion. This is the longest stretch of inflows since mid-2021, indicating that investor sentiment remains strong toward the second largest crypto asset.

Ethereum price

Ethereum traded slightly down 0.08% to $2,456 in the early Friday session as crypto markets took a breather, with investors booking profits.

The slight pullback follows a generally positive week for crypto majors, fueled by lower inflation readings and increased confidence about crypto regulatory frameworks in Asia.

Ethereum might consolidate for a little while longer as the daily RSI is just below the midpoint, indicating a balance of supply and demand. If the price rises above the moving averages, Ethereum might climb to $2,738 and then $2,879.

In contrast, if the Ethereum price falls and breaks below $2,323, it indicates that bears are selling on rallies. Ethereum may then retest its strong support at $2,111.