Ethereum is leading the altcoin army to victory by charging ahead like a bull. The silver cryptocurrency has recorded a new ATH of $4285.2 with a weekly appreciation of 32%. The first time ETH breached the $4000 mark was on May 11th, 2021. The spike was recorded after a 470% appreciation from the start of the month. It seems like ETH is not showing any signs of slowing down, as the green candles keep appearing on the price point.
After the London fork implementation and activation of smart contracts, the gas fees on the blockchain network was dropped to $12. As per data shared by Bitinfocharts, the number of average transaction fees shrunk exponentially in comparison to last week. However, this number has gone back up to $70. It should be noted that this gas price mark was not higher than $40 in February before the upgrade was introduced on the Ethereum blockchain. While the price is rising for now, in the long wrong, it can deflate.
Why are Investors Worrying about Rising Gas fees on Ethereum?
A slew of new Dogecoin alternatives has been launched on the Ethereum network. The most prominent one being the Shiba Inu coin called SHIB. After a series of interesting developments, the cryptocurrency has managed to create a huge hype in the crypto markets and has risen about 1,400%. It should be noted that 50% of reserves of SHIB are under the hold of Ethereum co-founder Vitalik Buterin.
However, the massive pumps have started to travel towards even bigger dumps. The utility-free parody cryptocurrency has started its downwards journey with 30% depreciation. Crypto analytics service Trustnodes has attributed the massive gas rise on Ethereum with the increasing volume of such “shitcoins” on the network. These prices represent the price for using the network; other functionalities like smart contract swapping, token interactions, and DeFi exchange rates are organically much higher.
The Attack of Dogecoin Clone Armies on Ethereum
The SHIB is not the only meme coin that is taking place on Ethereum. Another Doge clone like Woofy has also started rallying on the network today. The altcoin is introduced by Yearn Finance. Amidst the hype, it has already reached a ridiculous evaluation of $90,000. The much-anticipated airdrop of Woofy that sent the parody token to the moon turned out to be nothing more than a rumour.
Analysts are attributing this market behaviour to the FOMO of the 2017 bull run. While the investors were taking up opportunist positions on altcoin rallies to make a quick buck, a huge number of participants lost their money. SHIB was introduced in the market with the title of Ethereum killer. However, it seems that the parody token is being most detrimental to Ethereum itself. When these fluke tokens would be dumped, ETH price can crash down as well.