Cryptocurrency activity on Ethereum-based decentralized exchanges (DEXs) has seen a significant increase in recent weeks due to the popularity of memecoins. On April 19, the unique number of traders on Ethereum-based DEXs hit 72,000, which is a level not seen since the end of 2021. This surge was largely propelled by the "Pepe the Frog"-themed token pepe, which soared by an astonishing266 times in just four days. In addition to pepe, the sister memecoin tokens wojak and chad saw similar success, with each boasting daily volumes of between $10 million and $100 million.

This impressive surge also gave rise to activities from MEV traders. MEV stands for Maximal Extractable Value and seeks to exploit profitable on-chain transactions such as arbitrage and re-ordering of transactions. An MEV trading bot operator by the name of "jaredfromsubway" spent an approximate $1.1 million on Ethereum network fees and accrued a $700,000 profit through front-running memecoins. This increase in DEX trading activity has directly resulted in a surge of Ethereum gas fees to 73 gwei (one-billionth of an ETH), though it is now back to 43 gwei. Furthermore, the median gas price on Ethereum also experienced a growth spurt last week.

This rise in trading activity of memecoins has coincided with a drop in that of Non-Fungible Tokens (NFTs), declining to lows not seen since the middle of 2021. This decline is likely the result of many factors including decreasing floor prices, a reduction in hype around popular tokens, and the overly high gas prices that make trading costly for some. Overall, Ethereum DEXs have seen a noticeable increase in their trading performance throughout the last few weeks. In contrast, NFT trading has simultaneously decreased, resulting in a combined shift in market activity.



Other News from Today