Price drawdown from ATH
2022 approaches year-end; it has been a historical year for all asset classes due to the rapid tightening of monetary policy worldwide and the strength of the U.S. dollar. It had severe implications on the crypto ecosystem, which has seen a wide range of liquidations and margin calls, as well as the collapse of FTX and Luna.
A mixed year for the Ethereum ecosystem saw a successful merge in September, and, as a result, ETH was net deflationary for October. However, the magnitude of losses from an investor point of view has been monumental in the DeFi ecosystem.
Ethereum is currently 73% off its all-time high, floating around $1,200; significant liquidations and deleveraging have occurred in 2022 with the fall out of Luna back in May and FTX collapse in November.
Ethereum gas usage from 2020 – 2022
Gas fees are the cost of conducting a transaction or executing a contract. For example, this could see exchanging into a stablecoin or minting an NFT.
Since the summer of 2020, Ethereum gas fees have taken off primarily due to the explosion of DeFi use on chain.
Although network activity has tailed off significantly since the summer of 2021, the issue of Ethereum being an expensive chain still prevails.
Ethereum gas fees are priced in gwei, a unit of measure equivalent to one billionth of one ETH. Gas costs fluctuate depending on the network’s congestion, with periods requiring higher gas fees during peak demand to push through a transaction.
Stablecoins are cryptocurrencies designed to minimize price volatility by being pegged to a reference asset. The reference asset could be a commodity, cryptocurrency, or fiat money.
The market offers various stablecoins, such as asset-backed, including fiat, crypto, or precious metal assets, and algorithmic, which add to or subtract from circulating token supply to peg the price at the desired level.
The current gas usage for…
![Anticipation for Ethereum [ETH] 2.0 rises as metric reaches all-time high](https://crypto.newswireservice.net/wp-content/uploads/2023/01/ethereum-wale-1000x600-350x250.jpg)
