Trading activity on ethereum-based decentralized exchanges (DEXs) increased significantly last week as the memecoin caught the attention of crypto enthusiasts.
On April 19, the number of unique traders on Ethereum DEX hit 72,000, the highest level since late 2021, according to The Block Pro Dashboard.
quantity merchant only On Ethereum DEX | Source: The Block Pro
meme coin craze
Memecoin has had a small boom lately. For example, the “Pepe the Frog” themed PEPE token skyrocketed in a short period of time, jumping more than 266 times in just 4 days. The team managing the token appears to have drawn users away from popular dog-themed tokens like DOGE and SHIB to support the frog meme that has taken the internet by storm.
Simon Cousaert, chief data officer at The Block, said:
“Spectacular bull runs that have people flocking to meme coins like PEPE, WOJAK, and CHAD — all with daily volumes in the $10-100M range.”
Since then, the price of the aforementioned memecoin has plummeted, creating a “big feast” for MEV bots. Maximum Extractable Value (MEV) is a technique for manipulating the order of transactions to take advantage of profitable on-chain transactions — such as arbitrage and transaction reordering. Kusart said:
“The activity of inexperienced traders creates huge profit opportunities for MEV robots.”
Last week, the operator of an MEV trading bot called “jaredfromsubway” spent more than $1.1 million in ethereum network fees and made about $700,000 in profit from pre-run tokens and memecoins.
Increased trading activity on DEXs also caused Ethereum gas fees to spike to around 73 gwei on April 19. However, this number has now been reduced to approximately 43 gwei. (A gwei is one billionth of an ETH).
Ethereum’s average gas price also increased last week | Source: theblock.pro
Number of NFT traders on Ethereum is down
While traders on Ethereum DEXs surged last week, the number of NFT traders has fallen to its lowest point since July 2021.
“Overall, the NFT market is slowing down. Floor prices are down. Starbucks’ latest collection hasn’t sold out. The hype around Blur seems to have subsided. Plus, gas prices are high, which discourages people from transacting,” The Block Rebecca Stevens, Data Research Analyst at .
all merchant non-homogeneous token more than Ether on a losing streak | Source: The Block Pro
- Billionaire Chamath Palihapitiya: Cryptocurrencies Are Dying in the US
- The average daily loss of NFT traders is 1000ETH, and the bottom price of NFT blue chips plummets
- There are currently 23.7 million addresses holding 0.01 ETH
According to the block