- Ethereum gas fees skyrocketed due to Binance’s proof-of-reserve efforts
- Activity on the network increased, however, the sentiment against Ethereum decreased
In the last few days, there was a massive increase in of ethereal [ETH] Gas expenses and spent gas. This massive increase was caused by Binance moving large amounts of Ethereum for their proof-of-reserve efforts.
Read of ethereal [ETH] price prediction 2023-2024
As can be seen in the image below, Ethereum gas fees hit new highs, rising to 222 gwei. According to Wu Blockchain, this occurred because:
“Binance consolidated funds from countless deposit addresses into the Binance14 hot wallet in preparation for the next stage of POR verification.”
This led to Binance generating gas fees of 889 ETH and transferring over 437,000 ETH in an attempt to validate his PReserve Ceiling and keep the faith of their customers.
The Ethereum Gas fee once skyrocketed to 222 Gwei, as binance consolidated funds from countless deposit addresses into the Binance14 hot wallet in preparation for the next stage of POR verification. Binance has completed its BTC reserve and is starting an ETH verification. https://t.co/Tan4AEjNMn pic.twitter.com/ylgUZ40pYa
— Wu Blockchain (@WuBlockchain) December 10, 2022
However, this increase in gas fees could have had a negative impact, as high gas fees could affect retail investors and affect general sentiment against Ethereum.
In the chart provided below, it can be seen that the weighted sentiment against Ethereum was negative. Despite that, however, large addresses continued to accumulate. ETH.
As the chart below demonstrates, the percentage of Ethereum held by large addresses grew significantly after November 16. This support from large directorates could help sustain Ethereal‘s increase.
Another positive for Ethereum would be the increased activity on the network.
The number of active addresses on the Ethereum network has grown considerably in the last two weeks and stood at 33,300 addresses at the time of writing.
Along with the information mentioned above, the number of addresses with more than 0.01 ETH also reached a four-month high of 22k addresses, according to glass node.
📈 #ethereal $ETH Number of addresses with more than 0.01 coins just hit a 4-month high of 22,444,478
See metric:https://t.co/XXb0u19ouH pic.twitter.com/H4UvSmgU16
— glassnode alerts (@glassnodealerts) December 10, 2022
Are investors ‘shortsighted’?
Despite the support shown by large addresses and the high activity on the Ethereum network, traders were not confident in the growth of Ethereum.
The image below revealed that the Ethereum funding rate decreased. Therefore, traders who took short positions against Ethereum increased and were willing to pay long-term traders.
Whether these short sellers will be able to make a profit has yet to be determined.
At the time of writing, ETH it was trading at $1,272.6. Its price rose 0.62% in the last 24 hours.