The Ethereum network has witnessed a significant increase in activity, which is fueling a surge in its price. This surge is attributed to a wide range of factors, including the launch of Ethereum 2.0 and the increase in usage of decentralized finance (DeFi) solutions. The network’s activity, which is close to its 2018 peak, has led to an increase in the price of the ETH token, thus confirming the strong correlation between network activity and the price of the digital asset.
The rise in the price of ETH is also associated with the increase in Gas usage on the Ethereum network. Gas refers to the computational effort required to execute specific operations on the Ethereum platform. As more users engage with Ethereum-based applications, the demand for Gas increases, thereby pushing up the price of ETH. In conclusion, the Ethereum network’s growing popularity and usage, especially in the DeFi sector, is driving the price surge of its native token, ETH.
