Ethereum price has shown to be at a great shape after reaching $425 and surging by over 7% in the last 24 hours. The second-largest cryptocurrency is a market leader and continues to show strength despite slower growth in the crypto industry. The main question is related to how far the Ethereum price (ETH) can yet move.
Ethereum Price Surges
Ethereum price continues to move higher as the entire crypto market is looking at it as a leader now that Bitcoin’s growth stabilized. In the last 24 hours, Ethereum registered a price expansion of 7.46%, the largest among the top 15 cryptocurrencies. Due to this reason, Ethereum surpassed for a brief period of time $430 and now it is being traded close to $425.
Ethereum transactions are also growing. As we reported in previous articles, the number of Ethereum transactions are close to all-time highs. This shows the network is being used on a regular basis more and more by users in the market.
It is worth taking into consideration that a large part of the current increase in transactions is related to DeFi solutions. The market has been expanding and users are enjoying the benefits of a wide range of Decentralized Finance services providers. Of course, the industry is still growing and there are many risks related to it.
The funds locked in DeFi have reached $5.14 billion and they could continue growing in the coming weeks. Maker (MKR) remains the leader with 30% of the funds locked.
This growth in transactions is also pushing Ethereum transaction fees higher and making it somehow more difficult for users to handle their funds. This is a harmful thing that Ethereum must solve as soon as possible considering this could definitely harm the growth of DeFi and other sectors of the Ethereum network.
Back in 2017 when the crypto market was reaching all-time highs, Ethereum also experienced high fees. This was due to the fact that decentralized apps such as CryptoKitties were using a large number of transactions. Due to this reason, Bitcoin (BTC) holders that were using ETH to perform transfers moved to Litecoin (LTC) which was offering very low fees and fast transaction times at that time.
This is also happening now where we see that LTC is processing very low transaction fees (close to $0.01) and they still offer very fast transaction times for users.