As attention turns to BRC-20 tokens on the Bitcoin [BTC] network, the buzz around meme-based tokens on the Ethereum [ETH] network, which increased the staking rate, has started to fade.
Data from beaconcha.in indicates that Ethereum’s staking rates, which reached a post-merge high of 8.6% on May 5 as a result of elevated on-chain gas fees, have started to decrease. At the time of publication, this was 6.72%.
The unexpected release of the meme token Pepe [PEPE] and the subsequent meteoric rise in its trading activity and value were the main causes of the meme coin craze on the Ethereum network.
On April 30, on-chain data provider Nansen tweeted that in just two weeks, there were more than 54,000 PEPE holders. The market valuation of the meme coin surpassed $1 billion, helped by its inclusion in Binance’s Innovation Zone on May 5.
However, when profit-taking accelerated and trading volume dropped, PEPE’s trading volume swiftly decreased, and at the time of publication, its market cap was below $1 billion. As of the time of writing, it has lost more than 50% of its value from the $0.000004354 all-time high it had achieved just five days before.
The median average transaction fee on the Ethereum network jumped to its highest level since May 2022 as PEPE observed significant trading activity as a result of an increase in on-chain activity.
Gas costs on the Ethereum network, however, have also been trending lower as the token’s trading volume declines. The daily median gas price was 87 gwei at press time, down from a high of 143 gwei on May 5, however, it was still at a one-year high.
The top altcoin was trading at $1,836.71 at the time of publication. Selling pressure has increased since the market dropped from a high of $2008 on May 6. Key momentum indicators were below their respective neutral areas on a daily chart, showing that purchasing pressure was greater than selling pressure. Relative Strength Index (RSI) for
ETH, for instance, was 44.97. Its Money Flow Index (MFI) was 48.24 as well. The Chaikin Money Flow was also below its middle line. A liquidity exit occurred for ETH at around -0.05 at the time of writing, which could lead to more price declines.
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