Ethereum $4,212.94 The network has been experiencing a significant increase in transaction volume recently. In January 2024, the network, which is reached again with 1.9 million transactions daily, attracts the attention of both individual and corporate investors. Increased transaction volume; Technical improvements are described by price movements and revival in on-achain activities.
Ethereum Technical Improvements
It has been observed that there is a continuous rise in the number of daily transactions in recent weeks. Ethereum network, since March since the 50 percent increase in the GAS limit, can operate more in a single block. The Fidital Digital Assets research team says that this capacity increase increases the yield significantly, thus decreasing the network blockages.
Fidelity Digital Assets Research Team: “Ethereum’s main network has been experiencing a significant increase in the number of transactions due to an increase in a 50 percent increase in the GAS limit since March. This change enables more transactions to be processed in a block.”
In this way, transaction fees in the decentralized finance protocols and stablecoin transfers fell below one dollar. In particular, defi transactions increase the mobility on the network.
Market and participatory dynamics
Another important factor in this mobility of Ethereum is the rise in the price of Ether. The rapid rise of prices in a short time increases speculative participation in the crypto currency market.
Ray Youssef, CEO of Noones, said, çık The increase in Ethereum transactions is a result of the hard price rise in a short time, ”he said. Youssef also stressed that the receipt of positive signals from the regulators increases the participation: “Companies want to jump into the last wagon of the crypto train.”
In this process, decentralized stock exchanges and stablecoin transfers lead both gas fees and total transaction volume. Jake Koch-Gallup from Messari says that these two items are the main source of the process of transaction on the network.
Koch-Gallup: “With rising prices, speculative transactions, incentive programs and deepening liquidity trigger more participation. These dynamics increase the volume of processing both directly and indirectly”
Corporate impact and future view
Corporate interest began to play an important role in the Ethereum ecosystem. Following new regulations, companies show more interest to Ethereum. Experts think that corporate participation will support the long -term ecosystem, but the direct impact on the volume of transaction in the short term is limited.
Koch-Gallup: “Corporate ETH accumulation can increase long-term demand, but this accumulation has a direct impact on the instant process volume.”
Developments in Ethereum indicate that the process request is progressing in parallel with the network capacity. This is a positive show in terms of the sustainability of the ecosystem. However, experts say that the continuation of the trend will not only be limited to positive market conditions.
Koch-Gallup said that the amount of ETH burned on the network decreased with the decrease in transaction fees, and from time to time the supply became inflationary.
Koch-Gallup: “The low wages and the lack of demand in L1 slowed ETH burning; for sustainability, the increase in activity in the main network or the L2’s resources are required.”
Ethereum is also working on new development plans for scaling the network. Advanced applications such as Peerdas and L2 integrations can help further increase the efficiency and processing volume.
As a result, an effective indicator of the future ecosystem health and the growth potential of the developments in Ethereum. Experts and participants closely follow the process on whether this increase will be permanent. The sustainable growth of the network depends on the harmony of technical and economic factors. Stable growth will also be supportive for ETH price.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
