On-chain metrics for the Ethereum network have been extremely bullish recently. Several indicators have revealed that transactions and throughput are at an all-time high.
In its weekly report, on-chain analytics provider Glassnode has delved into the Ethereum network as the asset surged to an all-time high of $3,447 on May 4.
The research has revealed that a miner’s adjustment increasing the block gas limit to 15M has increased the overall throughput of the Ethereum blockchain. It’s now reached a new all-time high this week of 16.5 transactions per second. This is still way behind rival chains, but none of them have managed to “kill Ethereum” yet.
There is a limit for the total gas that can be spent on the transactions contained within a block, and maintaining this limit helps manage the growth of the Ethereum blockchain and the cost of operating a node. When under heavy load, miners can raise the limit to ease the pressure and hopefully reduce the average gas costs.
It has had the desired effect as average gas prices have fallen from a high of $30 on April 20 to around $8 on May 2 according to BitInfoCharts.
Smart Contract holdings surge
The research noted a correlation between the amount of ETH being withdrawn from exchanges and the amount being locked into DeFi related smart contracts.
There is now around 12% of the total ETH supply held on