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September 14, 2018, 10:14:33 PM |
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Virtually, there are more mechanisms concerned here.
First, while transfering ETH or ERC-20 tokens (or any more superior tokens, for the problem), humans placed a cost on the ETH or token, be it in a present, a purchase or an trade. If it is an exchange, it's even more obvious because it creates on a massive scale a charge between the cryptocurrencies used within the exchange. So, the exchanged token topics.
Plus, ETH is used to make a transaction, via fuel. when humans have a need for greater transactions, they use extra gas. As such, it will increase the incentives to have more ETH with a view to use greater gas. it's miles negligible on a small scale, even though, even greater so while scaling answers are coming. I haven't any proof, but i'd say this component is negligible, when searching at the amount of ETH burnt. but we still see rate and transactions are correlated.
however given that we see correlation instead of causation here, i would be extra willing to look that ultimate bit inside the opposite way: since the charge will increase, reputation receives lower back and those create greater transactions. perhaps trading bots have an simpler time trading while fee increases rather than falls? Or perhaps a high price is better to earn money through buying and selling bots for a given amount of ETH? I do not know, it is handiest hypothesis, from right here.
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