Blockchain journalist Colin Wu and data analytics firm Santiment have shared the latest Ethereum statistics. These statistics show why Ethereum (ETH) spiked to the $3,800 level early on Monday.
On September 1, ETH first climbed above the $3,500 level and recaptured the $3,500 level for the first time since mid-May.
NFT frenzy and ETHs burned
Chinese Blockchain journalist Colin Wu noted that the recent price increase of Ethereum, the second largest cryptocurrency, is largely due to the growing popularity of non-changeable tokens (NFTs) operating on the ETH Blockchain.
Some expensive artworks were sold as NFTs this year. Important names such as Tron CEO Justin Sun shared praise about the NFTs they bought. Another example of the popular NFT sale is Fortune’s NFT collection. The famous magazine released its latest cover art as the NFT collection and sold it for $1.3 million worth of Ethereum.
The second reason Wu mentioned is that as of September 2, 164,000 ETH had been burned. The implementation of the EIP-1559 Ethereum upgrade on August 5 now allows some of the ETH fees to be burned.
Investor focus shifts from SOL to ETH
According to data provided by Santiment analytics provider, investor interest is currently shifting from Solana (SOL) to Ethereum, which was one of the main reasons that pushed ETH above $3,500 on Monday. The diversion of investors greatly contributed to the fact that ETH reached the level of $ 3,800 today.
On August 31, SOL hit an all-time high of $130.
Also, according to CryptoQuant, the supply of Ethereum on centralized cryptocurrency exchanges has drastically decreased over the past week.
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