As the memecoin craze fades, Ethereum’s staking rate and gas fees have begun to decline.
On the daily chart, ETH’s selling pressure outweighs buying pressure.
As the focus turns to BRC-20 tokens on the Bitcoin [BTC] network, the hype surrounding meme-based tokens on the Ethereum [ETH] network has begun to die down.
Ethereum’s staking rate, which climbed to a post-merger high of 8.6% on May 5 amid an increase in on-chain gas fees, has begun to decline. At press time, it stands at 6.72%.
The meme coin frenzy on the Ethereum network was primarily driven by the unexpected launch of the meme token Pepe [PEPE] and its astronomical surge in trading activity and value in the following weeks.
According to a tweet from the on-chain data provider on April 30, the number of PEPE holders exceeded 54,000 in just two weeks. The memecoin’s market cap surpassed the $1 billion mark, boosted by its inclusion in the Binance Innovation Zone on May 5.
But as profit-taking intensified and trading volume declined, PEPE's trading volume fell rapidly, and its market value fell below the $1 billion mark as of press time. At the time of writing, its value has fallen by more than 50% from its all-time high of $0.000004354 set 5 days ago.
GAS fees are also starting to go downhill
Due to the increase in on-chain activity on Ethereum, the average median transaction fee on the network rose to its highest level since May 2022 as PEPE recorded huge transaction activity.
However, as the number of token transactions decreases, gas fees on the Ethereum network are also trending downwards.
While still at a one-year high, the median daily gas cost was 87 gwei, down from the high of 143 gwei reached on May 5.
