Ethereum Gas Price Spikes 29%: User Activity Grows
• Ethereum gas prices spiked by 29% in January 2023 due to increased user activity.
• Average number of unique active Ethereum wallets per day decreased by 10%.
• Average number of transactions on the network also decreased by 0.8%.
Ethereum Gas Price Spikes in January as User Activity Grows
Ethereum block statistics show that the average number of blocks mined each day showed little to no change, while the total block size per month increased by 7%. According to a data report from Analytex, Ethereum’s average gas price — calculated in terms of the smallest Ether denomination, gwei — increased by 29.27% in January 2023. This increase is indicative of an upsurge in user activity on the Ethereum blockchain.
Average Number of Wallets and Transactions
The report notes that the average number of unique active Ethereum wallets per day decreased by around 10% to 387,475, the lowest figure over the past six months. Meanwhile, the average number of unique active smart contracts increased by 6.74%. As shown above, other important metrics measured include daily Ethereum transaction data, which showed a slight decrease of 0.8% from December to January. The report notes that the average number of Ethereum transactions per day has declined for eight months.
On-Chain Activities Fueling Growth
Stepping into 2023, it seems that cryptocurrency investors have taken notice of long-awaited price corrections and are reacting accordingly with on-chain activities on the Ethereum blockchain. The surge in user activity is likely responsible for driving up demand for transactions and boosting gas prices across the network — a development which may point towards increasing institutional interest in cryptocurrencies as we move deeper into this year.
Potential Impact on Long-Term Prices
It remains unclear how these changes will affect long-term prices within cryptocurrency markets given their inherent volatility — however increases in user activity could signal positive sentiment among investors who are looking for returns amid rising market prices across different tokens and coins this year.
Conclusion
Overall, it appears that 2021 is already off to an interesting start with regards to cryptocurrencies — and with further gains expected from institutional investors throughout this year there could be potential for significant growth within crypto markets if investor confidence remains high despite potential market fluctuations along the way
