Ether Surges Amid Record Validators and High On-Chain Profitability
Summary:
On February 12, Ether's price increased to $2,624 spurred by a thriving crypto market. This surge was attributed to an escalation in Ethereum validators, a peak annual Total Value Locked (TVL), and high weekly fees. The validator queue hit its highest since October 2023, resulting in increased network participation. Meanwhile, the TVL on the Ethereum network reached a yearly high of $23.30 billion, indicating increased liquidity. Lastly, Ethereum's on-chain profitability rose significantly in February, generating over $84 million in fees over the past week.
On February 12, the price of Ether (ETH) surged to $2,624, riding the wave of a bullish crypto market that saw Bitcoin reaching a 2-year apex above $50,300. Data reveals that a growing validator queue, peak annual TVL, and substantial weekly fees are integral to Ether's current momentum.
We've seen a surge in Ethereum validators in the network over the last day. ValidatorQueue data indicates an escalation in Ethereum entry queue validators to 7,045 on Feb. 12, marking the sharpest rise since Oct. 6, 2023. Additionally, the count of active validators has hit a peak number at 936,838. These validators serve a critical role in operating Ethereum's proof-of-stake consensus model, staking a minimum of 32 Ether and gaining staking rewards in return.
Ethereum's total value locked (TVL) hit the top spot for the year, according to L2beat, reaching $23.30 billion. The TVL is the aggregated total of all canonically bridged, externally bridged, and intrinsically minted tokens converted into USD. The metric rose by 9.6% over the week, aided by a 14.71% individual TVL spike by the optimism mainnet. Metis protocol also witnessed a growth of 14.06%.
An upswing in TVL points towards increased liquidity and capital secured in smart contracts, and fosters enhanced incentives and rewards for network users.
Ethereum's on-chain profitability soared in February, with data from token terminal revealing the Ethereum network generating over $84 million in fees over the past week. To put this into context, this amount stands over three times as much as that of Trons and significantly outpaces Bitcoin's fee of $16.5 million.
Usually, an increase in fee revenue bodes well for Ether price as it links to the network's usage. Please note, this news piece does not provide investment advise or recommendations. Every investment and trading step incorporates risk, thus, it's advised for readers to undertake their own groundwork before making any decision.
Published At
2/12/2024 11:17:14 PM
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