Just another day seeing the Ethereum Gas fees at a very high price, got to over 200 GWEI recently, which shows just how much people are using the Ethereum chain. We now have Ethereum layer 2 tokens competing with native Ether for gas fees. Gas fees are raised high when there are too many activities on the chain, the high gas fees helps to reduce activities, because, it discourages you from performing any transaction, thereby reducing congestion one person at a time.
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One of the reasons the Ethereum gas fees is getting higher recently is based on the layer 2s on the EVM ecosystem. These activities are too high it’s beginning to affect the testnet system too. Can you imagine most testnet faucets running out of faucets, now you have to buy some of the faucets to be able to test some of the testnets. The high gas fees is also affecting the testnets as activities are also high. The last three weeks has been the birth of numerous shit memecoins on the Arbitrum chain. Especially with Pepe getting pumped with huge liquidity and getting listed on Binance within one month of launch got a lot of memecoins trying to be the next Pepe.
This also motivated more devs to start developing more tokens on different chains, the rate at which new memecoins have sprung up across all chains recently, just tells you how much liquidity is being pumped into the market. But with all these liquidities being pumped into the market, we are still in the bear market. I expected the value of Ethereum to pump with the increase in memecoins development on the Arbitrum chain. Because, the demand for Arbitrum ETH increased, tokens pumped and tokens dumped, but why didn’t the value of ETH pump?
Does this means that the bull market is not determined by the majority of the community but more of the activities of the institutional whales. Because, the community has been showing up and making lots of activities, more than $30 Million was spent on Ethereum gas fees a day ago. If you sneak into some people’s wallet, you will see how much transactions they are making. But why are we still in a bear market? I guess the institutional whales are asleep right now.