Daily gas usage on the Ethereum network is at its peak, indicating that the network is being used more than ever, according to data from Etherscan, a Block Explorer and Analytics platform for Ethereum.
The Ethereum Virtual Machine (EVM) uses Gas as a unit to measure the computational work (CPU cycles, disk writing, and even memory on the hosting machine) of its operations on the Ethereum network.
The "right metric" to measure ethereum network usage would be Total Gas Spent Per Day, according to Eric Conner, who founded EthHub, an Ethereum-focused research site.
ETH pricing versus Ethereum block space fees
Ryan Sean Adams, founder of Mythos Capital, says there is a difference between the demand for space on the Ethereum block and the demand for ETH as an asset.
“ETH the asset: a scarce commodity money with 110 million units and algorithmic emission applied by social contract; and Ethereum blocks, a rare commodity for the settlement space produced by Ethereum in quantities of 6,000 units per day, each of which currently contains nearly 10m of gas-measured compute space. ”
Ethereum is in a period when rates are increasing faster than their prices.
According to Sean Adams, there is a strong historical correlation between ETH's asset prices and Ethereum's block prices (block fees), so "Either the block rates must fall, or the price of ETH must rise so that this historical relation returns to the average".
Ethereum follows dwindles
Meanwhile, network analyst Etherum Sean Adams expects a turnaround in the downtrend that ETH has been experiencing. For this expert, an increase in demand and adoption will allow him to be "Recognized as a value reserve asset for years to come."
On the other hand, software engineer and crypto enthusiast Marco Levarato commented that in order for Ethereum's price to rise organically, there must be a rebalancing in the way Gas rates are distributed.
The ETH (Gas) paid for the fees go back to the miners that sells that amount, so its balanced. The price to go organically up needs an imbalance. Burning the fees with the eip 1559, wil create this imbalance. The price can still go up other reasons e.g. demand for borrowing DAI
– Marco Levarato (@Marcolevarato) May 25, 2020
May does not seem to be the best month for Ethereum traders, who have not experienced the bullish trend they were expecting. However, more investors and users keep the token for months looking to have at least 32 ETH to validate the blocks in the next change to Proof of Stake.
Ethereum 2.0, the evolution of the Ethereum platform, has high expectations in the encryption community, which awaits its release, although the exact date is not yet known.