Ethereum tests all-time high amid SHIBA-INU fever

The price of Ethereum (ETH) briefly hit new all-time highs on Friday, with major on-chain indices rising faster than competitors over the past month. In the meantime, the current meme coin mania also contributes to the value proposition of ETH, as Shiba Inu (SHIB) currently uses more gas than even large stablecoins.

Ethereum tests all-time high

At 11:13 UTC, ETH is still up nearly 5% in the past 24 hours, trading at $ 4,335 after hitting 4,400 for the first time.

The new all-time high ($ 4,416) comes as on-chain data compiled by Kraken Intelligence shows that the number of active Ethereum addresses has increased 5.8% since last month. Ethereum’s growth is due to other smart contract platforms Cardano (ADA) and Polkadot (DOT) seeing 8.9% and 3.3% decreases in the number of active addresses on their platforms, respectively. Meanwhile, Bitcoin (BTC) outperformed all of them with a 9.7% growth.

Similarly, the number of transactions made through the Ethereum network has increased by 2.3% since last month (average monthly number of transactions – 1.2 million). This contrasts with a growth in transaction volume of only 1.5% for Polkadot and a decline of 9.5% for Cardano. BTC is up almost 9% (to 272,000 transactions).

Unsurprisingly, ETH’s new high has also impressed investors. Around the same time that ETH was hitting an all-time high, Raoul Pal, founder and CEO of Real Vision, said he was “irresponsibly ignoring ETH at the moment”.

“I have leverage now, but through phone calls. This is the biggest single position of my life by a factor of 10 (or more), ”said Pal, adding his time frame as he expects big changes to be seen in ETH. :

“My vision for this part of the trade is six to nine months.”

However, as reported, last week ETH saw investment outflows for the third straight week, according to CoinShares data. The company said it would be “a small win if prices close at all-time highs”. At the same time, BTC saw 99% inflows totaling $ 1.45 billion last week after a BTC futures ETF launched in the US last week.

The SHIB fever is one reason for the rise in Ethereum prices

The ETH price hike coincides with the recent craze for Shiba Inu, Dogecoin (DOGE) and other memes, formerly Ethereum-based ERC-20 tokens.

As a result, all transactions made using the Ethereum-backed SHIB also contribute to the burning of ETH tokens, which in theory should help drive the price up. At the time of going to press on Friday, the SHIB token ranks as the seventh largest ETH destroyer, ahead of the most important stablecoin USDC and just below the swap router of the popular MetaMask wallet, showing blockchain data.

Token burning on Ethereum was introduced with the EIP-1559 upgrade on August 5th this year, with the aim of making ETH less inflationary than before. Since activation, 671,259 ETH ($ 2.9 billion) have been burned, which, according to data from WatchtheBurn.com, accounts for more than half of all new tokens issued during the same period.

As reported, the Altair hard fork, the first mainnet upgrade of Ethereum’s beacon chain, went live last Wednesday. The update is seen as a “low kick” for the upcoming merge, as the current Ethereum mainnet, secured with a proof-of-work (PoW) consensus mechanism, is “merging” with the Beacon Chain Proof-of-pile System (PoS) “.

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