- Ethereum ICO participant cashes in on $390M windfall.
- Ethereum network activity surges, fees and ETH burning skyrocket by 314% and 1,600% respectively.
- Active accounts decline to a yearly low due to high fees. EIP-1559 might alleviate congestion.
An Ethereum [ETH] ICO participant who amassed a profit of 150k ETH worth nearly $390 million at the GENESIS event has deposited 3,510 ETH or $9.12 million into Kraken after being inactive for over two years. The deposit of such a large amount of ETH into Kraken could positively impact the price of the cryptocurrency.
The anonymous participant bought the stash at the ICO price of $46.5K. The token’s price has since skyrocketed, turning the investment into profitable. The participant’s recent deposit into Kraken could mean that they may be looking to cash out some of their profits. Alternatively, they could simply be moving their funds to a more secure exchange.
This participant’s story not only is a reminder of the potential rewards of investing in cryptocurrencies but also highlights the advantages of adopting a long-term holding strategy during periods of market downturn. However, it is important to note that cryptocurrencies are highly volatile, and one must be aware of the risks involved which means it is possible to lose significant money.
Meanwhile, the seven-day moving average of Ethereum transaction fees has reached $3.52, a surge of 314% from $0.85 on September 1. On September 21, the daily burning of ETH hit 1,360, a surge of 1,600% from 80.27 on September 1. However, the number of active accounts on the Ethereum network fell to the lowest point of the year, about 385,000.
Ethereum Transaction Soars But Active Address Drop
The increase in transaction fees could be a combination of factors, including increased network congestion and the growing popularity of decentralized applications [dApps] built on Ethereum. The surge in ETH burning is a result of the EIP-1559 upgrade, which was implemented in August 2021. EIP-1559 introduces a base fee for transactions, which is burned rather than going to miners.
The decline in active accounts on the Ethereum network is somewhat surprising, given the increase in transaction fees and ETH burning. It is possible that some users are being deterred by the high fees, or that they are simply finding other networks that are less congested.
Despite the decline in active accounts, Ethereum remains the most popular blockchain platform for dApps. It remains to be seen whether the recent surge in transaction fees and ETH burning will continue. If the network becomes too congested, it could deter users and developers from using Ethereum. However, the EIP-1559 upgrade is expected to help to reduce congestion over time.
