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Ethereum Gas Price Spikes By 31.3%, How Will ETH Price React?

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VOC, Voice of Crypto, ETH, Ethereum

Key Insights

  • The Ethereum activity index shows an increase in gas prices in October
  • The Gas price increased by 31.3% in October compared with September
  • Experts attribute the increase to the Merge that occurred in September

The Ethereum activity index showed that in October 2022, the Ethereum Gas price increased by 31.3%. This is coming shortly after the merge of the blockchain in September.

CryptoVinco, in his tweet, predicts a large price action, then a continued downturn after the merge. 

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In the activity index report, aside from the increase in the gas price volume, — there are other data showing how the Ethereum blockchain is faring.

Similarly, this article will identify some metrics responsible for the surge in Ethereum Gas price.  In calculating the activity index, the data analytics firm considers several factors. They include active wallets on the network, gas usage, and transaction statistics. 

How Ethereum Gas Price Increased By 31.3%

The Ethereum activity index of October (Q3) showed that the average Ethereum gas price increased in October by 31.3%. 

In September, the price stood at an average of 22.5gwei and increased to 17.1gwei in October. It attributes this increase to the chain activity. 

Furthermore, comparing the average indicators between September and October shows an increase in the former. In October, the index stood at an average of 51 points. The max point stood at 60 on the 10th, while the lowest stood at 42 on the 30th of October. 

Similarly, in October, the average daily volume of Ethereum transactions increased compared to September. In September, there were 33,741,733 transactions with an average daily volume of 1,124,724.  In October, Ethereum transactions rose to 33,741,733, with an average daily volume of 1,124,724. 

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Experts attribute the merge as the reason for the slight increase in some indexes.  For instance, the average Ethereum blocks per day also increased by 7.4%.  Since the merge, the number of blocks per day and block size has continued to increase. 

Between September and October, the average number of blocks per day rose from 6,665 to 7,157 in October. 

Similarly, the Ethereum activity index showed an increase in average block size.  There was an increase from 0.49GB in September to 0.50 GB in October. This shows the average blocks mined per day increased by 2%. 

However, as the metrics listed above increased, leading to a surge in gas prices, some metrics declined. For instance, the average number of unique active crypto wallets per day declined. It moved from 7.4% in September to 4.6% in October. 

Similarly, the daily active smart contract decreased from 25,294 in September to 24,123 in October. 

Conclusion

The Ethereum activity index shows several statistics comparing the rise and fall in some trading metrics. According to the October report, Ethereum gas prices increased. 

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Experts attribute the increase to the merge in September. Significantly, this increase comes when the crypto market is bearish. On the other hand, some performance indexes fell from their record in the previous month. 

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