Ethereum’s gains have tripled in the first quarter of 2024

Ethereum started 2024 in high spirits, with considerable gains ruling the market environment and causing considerable optimism among participants.

Even though corrections were inevitable, they are not predicted to affect the ETH price all that much, and most investors and analysts expect that the coin will remain strong throughout the next period.

Add to that the fact that the current year is set to be especially beneficial for the digital finance environment, and you might decide that it’s better to start investing right now before the prices skyrocket and making bigger movements will become unsustainable.

Triple earnings 

Ethereum is currently the most extensive blockchain network in the world when accounting for transaction volume, so many market participants were not surprised to find out that it has registered considerable growth during the first quarter of 2024.

However, that doesn’t make the news any less important, as it indicates that the trading environment will most likely remain consistent throughout the rest of the year. The data shows that Ether gathered over $1 billion in transaction fee revenue, roughly 155% more than during the same period in 2023.

The earnings tripled on a quarter-over-quarter basis, which represents an investment measure that seeks to record growth from one quarter to the next. At the moment, the current figures are positioned at $369 million, a 210% year-over-year increase compared to $119 million during Q1 of 2023.

Fees and revenues increased 79% and 85% respectively. The total gain of Ethereum has climbed as well, surging nearly 190% compared to the $385 million of last year.

The reason for this stellar performance is the considerable and consistent rally that permeated the trading environment throughout the earliest months of 2024. ETH approached its all-time high levels in March, and although it didn’t ultimately succeed in recapturing them, the strength of the upswing trend shows that there’s a lot of potential going further.

Fees and sentiment 

The higher prices also caused a spike in transaction costs, something that’s unsurprising given the way in which the crypto environment operates. As of late February, some users had begun reporting that they were paying over $100 to pay for transaction fees.

Although this trend was only consistent with the peak transaction times, it has still meant that the trading environment became unsustainable for many traders, and that they couldn’t be as engaged in the market as they would have been under normal circumstances.

The average gas fee was around $79 as of March 1st, a considerable decrease compared to just a few days earlier when the average cost for swap fees could be as high as $400.

However, that didn’t impact the general investor sentiment too much, allowing the environment to continue thriving and growing. Many investors have taken to consolidating and expanding their portfolios, guessing that this is the best time to do so.

The main reason for this strategy has been the anticipation of substantial growth and a very strong bullish rally that is set to arrive very soon. During that period, it will be difficult for most to keep up with the prices and the volatility, meaning that they will have to focus on growing their earnings and holding on to what they have at that point.

Tether 

Even during this changeable time, Tether remains the most noteworthy Ethereum-based stablecoin. The asset is tied to the ETF token and the inherent value of the United States dollar, with the issuer claiming that the coin is backed by loans and bank reserves which are either identical to or exceeding the value of the coins currently in circulation.

Even during the first quarter of the year, Tether added 14% to its marketplace value, a considerable rise compared to only a few months earlier.

Yet, its staunchest rival, USDC, managed to increase market value by a whopping 23% on a quarter-over-quarter basis. This follows the trend of this time of the year being particularly strong for all digital asset classes, a welcome change for the low engagement rates and stagnation that have permeated the environment for far too long.

In fact, the traditional finance market that hosts standard assets like real estate, stocks, bonds and precious metals and which has generally been seen as being in direct opposition to the cryptocurrency world, with some investors even considering them antagonistic to one another, has recorded quite a lot of growth as well during this timeframe.

Oil and gold have been doing exceptionally well, going back to 19% and 11%, respectively, and although IS bonds are continuing to sell off, both Bitcoin and Ethereum have climbed back to 57% and 45% in a very short period. This growth should not be disregarded, as it shows that the crypto environment is becoming more mature and able to hold on to its values for longer.

This is crucial because the main reason why crypto hasn’t gone mainstream yet is because many investors are concerned about the volatility and the potential of losing significant amounts of capital.

EIPs 

EIPs, also known as the Ethereum Improvement Proposal, are design documents that provide important information to the Ethereum trading community and aim to give the network a boost. They follow a standard format and are used to propose changes for the blockchain.

Among the most important ones to look out for in 2024, EIP-4844 was already launched in March. Others are currently in the making and expected to arrive on the market very soon.

EIP-1153 uses temporary storage to address the issue of costly Ethereum transactions, while EIP-4788 was developed in order to keep up with the validators as well as their state. This EIP will also oversee the general state of the market.

EIP-5656, also known as MCOPY opcode, will streamline data copying in the memory of smart contracts. Opcodes operate as instructions that help carry out tasks more efficiently, with large copies being more expensive and taking more time to complete.

Although 2024 has started on a positive note for the cryptocurrency environment, there are several challenges ahead as the marketplace continues to mature and become more resilient. Investors shouldn’t forget about their strategies, as they’re the only thing that allows them to maintain their earnings.