On Oct. 6, Ethereum transactions reached a daily average of 600,000 as network fees and ETH prices decreased.
A look at ether's transactional history chart indicates falling ETH prices made holders wary about using the digital currency as a medium-of-exchange.
The prices have since stabilized at the $200-$225 range and transactions have gained steam comparable to when ETH was hovering around the $300 mark in early-September.
The increased activity can also be attributed to Ethereum running at just 50 percent of its daily capacity-which, in turn, has caused network fees to fall below one cent even as 600,000 transactions were processed last week.
For ETH traders in cryptocurrency communities, transaction density is observed as a sentiment indicator for deciding mid-term price action, with the two moving in tandem.
The sharp surge in transactional history immediately indicates a price move for ETH may be observed shortly.
The fall in transactions at the beginning of last month caused prices to plunge to $167 on Sept. 12, with the price steadily recovering since.
For the uninitiated, GAS acts as "Fuel" for the Ethereum network and is independent of volatile ETH prices as the latter is traded against hundreds of millions of dollars each day.
Smart contracts consume more GAS than a transfer, which was partly why Ethereum transactions reached ostentatious amounts in December 2017; thousands of ICO tokens at the time ate up much of the network's computational resources upon release.
As more ETH equates to more token usage; the two charts are evident of user behavior.
Ethereum Fees Now Below One Cent, Transactional Charts Indicate Strong Price Action Ahead
Published on Oct 8, 2018
by Cryptoslate | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.