Ethereum Deposits Surge As PEPE Traders Move Profits to ETH

In a major decoupling move from the rest of the crypto market, the Ethereum (ETH) price is up by more than 3.56% over the last 24 hours eyeing a move above $2,000 levels. As of press time, ETH is trading at $1,966 with a market cap of $236 billion.

The latest development comes as active deposits on the Ethereum blockchain network shoot a 1.5-year high. As per on-chain data provider Santiment, a large number of crypto traders are converting their PEPE profits into ETH. On-chain data provider Santiment reports:

Exchange addresses interacting on the network is now at its highest level since November, 2021. As expected, $ETH is showing decoupling signs and on the cusp of breaking $2k once again.

The massive rally in the memecoin PEPE has created a major buzz in the crypto space currently with its trading volumes shooting past $2.7 billion, just after Bitcoin (BTC) and Ethereum (ETH).

Ethereum Gas Fee Jumps At 12-Month High

As the frog-themed memecoin aka Pepecoin (PEPE) created a massive frenzy, the daily median gas fee on the Ethereum blockchain has touched a new 12-month high of 87 gwei. Just for context, since the launch of Pepecoin (PEPE) on April 18, the gas fee on Ethereum has shot up by 50% as per pseudonymous analyst @hildobby’s Ethereum Gas tracker on Dune Analytics.

The ERC20 memecoin PEPE has been on an unstoppable price rally. The frenzy surrounding PEPE is so strong that Uniswap’s pepecoin-wrapped ether (PEPE-WETH) liquidity pools just became the most active liquidity pool by the number of transactions.

As per on-chain data, traders conducted a total of 413,283 PEPE Uniswap transactions burning over $10 million in gas fees.

I downloaded 413,283 PEPE Uniswap transactions from @DuneAnalytics

PEPE traders have burned ~5,300 ETH ($10M) in gas over the past 3 weeks 🤯

1/🧵 pic.twitter.com/9lZxGGjtT5

— Alex (@thiccythot_) May 5, 2023

However, investors also need to stay cautious as Vitalik Buterin and the Ethereum Foundation recently dumped over 15,000 ETH. Thus, one must stay watchful before the current momentum spirals into major sell order for Ethereum anytime soon.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.