Ethereum Daily Revenue Soars To A 4-Month High Of $10 Million
November 10 2023 - 9:00PM
NEWSBTC
When Ethereum (ETH) exploded past $2,000 on November 9, Erik Smith,
the Chief Investment Officer of 401
Capital, observed that the platform’s average daily
revenue surged to the highest level in four months. According to
data, Ethereum generated $10 million in daily revenue, extending
gains registered on the previous day and pushing the metric to the
highest point since July. Ethereum Prices Above $2,000, Revenue
Rising In November For now, ETH prices remain muted but are trading
around November 9 highs and remain within a bullish formation
backed by decent trading volumes. Prices are still trending above
the $2,000 psychological support, a critical reaction level. A look
at the Ethereum candlestick arrangement in the daily chart shows
that while there is a notable spike in daily revenue, prices are
still below July 2023 highs. Then, the coin soared to as high as
$2,100 before pulling back as the momentum triggered by the broader
crypto’s expectation of a Bitcoin Exchange-Traded Fund (ETF)
approval faded. However, prices have since sharply recovered,
adding roughly 40% from October lows and shaking off the weakness
registered on August 17 when the coin plunged by 14%. Related
Reading: $5 Million Reward: Justin Sun’s Bold Move Against Poloniex
Attackers Token Terminal data shows that Ethereum’s daily revenue
has steadily risen in the first ten days of November. Looking at
trends, the average daily income has doubled from $5 million in the
first five days of the month. Usually, an uptick in daily average
revenue in a network points to increasing on-chain activity either
through smart contract deployment or simple transfers, which
necessitates the payment of gas fees. Improving Scalability
In The Long Term How the widespread adoption of Ethereum layer-2
and sidechain scaling solutions will impact the network revenue is
not immediately apparent. } What’s clear is that the more protocols
leverage the protocol, deploying multiple solutions, the more
revenue the network will generate for validators and stakers.
Staking rewards are drawn partly from transaction fees paid as gas,
new issuance, and burned miner extractable value (MEV).
Still, the dollar value of ETH minted as revenue depends on spot
rates. If the uptrend is sustained, this figure will continue
expanding. Even so, there might be more demand for the network,
which is still struggling to scale on-chain. Related Reading:
Polygon (MATIC) Poised For A Bullish Surge, Analyst Who Predicted
2021 Fall Says Ethereum 2.0 aims to resolve these challenges in the
coming years by increasing the general throughput via solutions
like Sharding. Sharding will split Ethereum into small but
interconnected networks called shards. Each shard will
independently process each set of transactions and maintain its
state, allowing the mainnet to scale. Feature image from Canva,
chart from TradingView
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