Uniswap’s introduction of the native token and associated yield farming rewards has led to the digital gold rush. This golden rush has crippled the Ethereum network for the second time in weeks. This is good news for Ethereum miners. However, sales have hit their highest level in five years, according to on-chain analytics provider Glassnode.
Mining activity also brought Ethereum’s hash rate to its highest level since October 2018. According to Bitinfocharts.com, the hash rate reached 254 TH/s as at press time.
Uniswap Liquidity Leads to Higher Gas Fees
The last time it rose to such a high level was on September 2, when gas fees hit its highest level in history, driven by the craze for growing SushiSwap DeFi food farming.
This time they were defeated by Uniswap’s UNI airdrop and a two-month liquidity mining incentive. The pressure on the network is twofold: first, the companies that were dropped on UNI may have sold them at the price of ETH when the price went up. Second, they were keen to add their cash to Uniswap’s four new pools. These pools have amassed more than $825 million in a single day since their inception.
According to Dune Analytics, the median natural gas price rose to 544 gwei yesterday, the highest ever.
During the UNI peak on Thursday, some users reported more than 1,000 Gwei transaction fees. Bitinfocharts.com currently reports that the average cost of Ethereum transfers is $11. However, this is a lagging indicator and in terms of blockchain activity, the situation appears to have eased.
Ethereum Price Update
The price of Ethereum has also been driven by all recent activity, and many prominent members of the cryptocurrency community view Uniswap’s revenue farming pool as optimistic sentiment for ETH. A few hours ago, Ethereum’s price hit a two-week high below $390. The move increased by about 7% in the day and the asset increased by about 10% in a week.
Since then they have fallen slightly back to the $388 area, but the momentum is bullish and Ethereum can easily bounce back above $400 over the weekend.