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The Ethereum [ETH] network, despite its popularity, has been known to drive away users due to the high gas fees required to make transactions on the network.

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However, in recent days, gas fees on the network has dropped significantly, hitting a one-month low of 29.390 GWEI. This has renewed interest in Ethereum [ETH] from the crypto community, as evidenced by the spike in NFT activity on the network.

Over the past 24 hours, there has been a total of $58 million worth of transactions in the Ethereum NFT market, with 71,700 trades conducted.

Most of this activity (around 70%) took place on the Blur platform, where the average trade amount was $1,206. The remaining 16% of the volume was on OpenSea, where the average trade amount was $335.

The interest in Ethereum is not limited to users alone. Validators on the network have also shown an interest, with their numbers increasing by 6.22% over the past week. This increase in the validators has resulted in a 24.27% rise in revenue generated by them during this period.

Despite this, according to data provided by Dune Analytics, 55% of Ethereum stakers remained unprofitable at press time.

However, the same cannot be said for addresses holding ETH, as the high MVRV ratio suggests that most addresses on the network are profitable. The high profitability of the ETH addresses could incentivize new users to buy ETH going forward.

Realistic or not, heres ETH market cap in BTCs terms

On the other hand, the concentration of whales holding their ETH has increased materially over the last month.

This could make ETH vulnerable to large price fluctuations if these whales decide to sell. This could be one reason why short positions against ETH have increased tremendously over the last few days, according to data from Coinglass.

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What can Ethereums [ETH] declining gas fees mean for the protocol? Analyzing - AMBCrypto News