Largest altcoin Ether (ETH) built to its recent record high on Feb. 5 to climb ever closer to $ 2,000.
Ether price hits record $ 1,750
At the time of writing, Ether was targeting $ 1,750 as 6.5% daily profit surpassed weekly returns of nearly 22%.
The move came on the back of intense trading interests in DeFi coins, many of which use the Ethereum network as a base. DeFi produced many of the best movers on weekly time frames.
Ether, meanwhile, had already seen a significant rise when expectations had been built up about the launch of dedicated futures of CME Group, one of the pioneering Bitcoin futures operators. Wealth management giant Grayscale started buying ETH again for its Ether Trust this week after a nearly two-month hiatus.
Gas costs cause headaches
While some well-known cryptocurrency figures, including Gemini Exchange co-founder Tyler Winklevoss, celebrated price performance, the highs were accompanied by another record – transaction costs.
Such as Cointelegraph reported, gas costs on the Ethereum network got so high this week that some exchanges were forced to stop ETH withdrawals altogether.
“This is a legitimate crisis. I’ll have to stock up on popcorn to see Ethereum work its way out of it,” says Blockstream developer Grubles noticed.
According to data from YChartsthe average ETH fee was $ 23.27 on February 4, the last date for which statistics were available.
While Bitcoin (BTC) which fell below USD 40,000 in the meantime, macro conditions seemed appropriate to give the BTC / USD a new advantage. As the S&P 500 hit its own all-time high on Friday, the US dollar’s currency index fell, a phenomenon that traditionally implies that Bitcoin will benefit.
“Correlation is not a causal relationship, but the trend is quite clear: # The rapid rise in Bitcoin price (and occasional crashes) is closely related to the movements of the US Dollar Index (DXY),” data analysis service Kaiko wrote about the phenomenon this week.