Ethereum gas price spikes 29% in January as user activity grows: Report
2 min read
As the year 2023 begins, the cryptocurrency market appears to have left behind the bearish sentiments that plagued it throughout 2022. This resurgence has not gone unnoticed by investors, who have been eagerly anticipating a market correction. The reaction has been particularly evident on the Ethereum blockchain, where on-chain activities have spiked.
According to a data report from Analytex, the average gas price on the Ethereum network, measured in gwei (the smallest denomination of (Ether), rose by 29.27% in January 2023. This report compares gas prices from January 2022 to January 2023 and highlights the correlation between increased user activity and the month-on-month rise in the average gas price from 19.2 gwei to 24.82 gwei.
The latest cryptocurrency report highlights a significant shift in the Ethereum ecosystem. The average number of unique active Ethereum wallets per day witnessed a decrease of 10%, registering the lowest figure in the past six months at 387,475. Conversely, the average number of active smart contracts increased by 6.74%.
In terms of daily Ethereum transactions, the report shows a marginal decrease of 0.8% from December to January. The average number of Ethereum transactions per day has been on a decline for eight consecutive months.
Ethereum block statistics indicate stability in the average number of blocks mined each day, while the total block size per month experienced a growth of 7%. The daily average block data has remained stable at around 0.01% monthly since the Merge. The January Ethereum block size stood at 17.24 GB, marking a 7.08% increase from the previous month’s total of 16.1GB.
The crypto landscape has witnessed contrasting data metrics in recent months. According to recent reports, the number of transactions and unique active wallets has decreased from December 2022. However, the Ethereum activity index presents a different picture, as it showcases a rise in the number of active smart contracts and average gas cost prices.
Analytex interprets these findings as a sign of increased interest among both blockchain users and smart contract developers. As earlier reported Cointelegraph, the DeFi sector has also seen growth, with a 26% increase in the total value locked across various staking pools in January 2023, as reported by DappRadar. The market reached a milestone of $74.6 billion worth of staked assets.
The upcoming Shanghai upgrade of Ethereum is also a driving force behind the growth of staking in DeFi, as it is expected to allow for withdrawals from Ethereum staking contracts. This has resulted in Lido Finance surpassing Maker DAO as the largest DeFi protocol in January, driven by the popularity of liquid staking derivative protocols.
