On-chain metrics for the Ethereum network have been very bullish lately. Several indicators have revealed that transactions and throughput are at all-time highs.
In its weekly report, on-chain analytics provider Glassnode has investigated the Ethereum network as the asset surged to an all-time high of $3,447 on May 4.
Research has revealed that miner adjustments increasing the block gas limit to 15 million have increased the overall throughput of the Ethereum blockchain. It is now hitting a new all-time high this week with 16.5 transactions per second. It is still far behind the rival chains, but none of them have yet succeeded in “k*ll Ethereum”.
There is a limit to the total gas that can be spent on transactions contained within the block, and maintaining this limit helps manage the Ethereum blockchain growth and node operating costs. When under heavy load, miners can increase the limit to reduce pressure and hopefully reduce the average gas fee.
This is having the desired effect as the average gas price has dropped from a high of $30 on April 20 to around $8 on May 2 according to BitInfoCharts.
Increase in the Number of Owners of Smart Contracts
The study noted a correlation between the amount of ETH withdrawn from the exchange and the amount locked into DeFi-related smart contracts.
There is now about 12% of the total supply of ETH held on the exchange, the lowest level for more than a year. In contrast, nearly twice that (22.8%) has entered into smart contracts, a figure that is close to an all-time high.
“Nearly equal and opposite trends for this curve demonstrate a clear product market fit and demand for DeFi by ETH holders.”