The Binance breach resulted in a notable increase in activity on the Ethereum network, driving daily fees to a peak not seen since 2026. This surge resulted in record-breaking daily costs at $47.3 million on October 30. These costs exceeded the previously reported February figure of $34.5 million by 37.1%.The spike resulted from hackers swiftly converting stolen funds into tokens and then executing trades on the network. The rise in trading activities has intensified competition among arbitrage and MEV bot traders, who aim to capitalise on the opportunity to execute their trades with speed. Consequently, Ethereum’s volume significantly surpasses that of other platforms.
This includes BNB Chain and Base, which generated $2.47 million and $2.71 million, respectively. Petrol fees have been rising, reaching 253 Gwei on the 29th of October, driven by an increasing demand for block space. Whether this increase in activity will serve as an indication of further stress within the overall market remains uncertain. Despite the Binance breach inciting significant trading activity on Ethereum, large investors have leveraged this volatility to build long-term positions. On the 29th of October, whale 0x9EcA acquired 16,658 ETH for an estimated $37.96 million in USDC. With each purchase averaging $2,279 per token, they executed multiple buys through Uniswap’s V2 Dutch Order Reactor to facilitate the conversion of USDC to ETH. Each individual purchase ranged from 349 ETH to nearly 375 ETH.
This illustrates a continuous process of accumulation rather than merely a significant order being placed. Consequently, these acquisitions could bolster demand for ETH amid ongoing uncertainty. However, the purchases of a single whale cannot, in isolation, substantiate a wider shift in sentiment or counteract existing selling pressure. Despite the ongoing accumulation of substantial ETH by whales, Ethereum’s price recovery encounters yet another obstacle in the U.S. market, characterised by persistently weak buying demand. The Coinbase Premium index declined to – 0.21 on October 29th, marking the lowest levels since February, as ETH prices persistently traded below Binance prices.
Consequently, the prolonged discount suggests either heightened selling pressure or diminished buying interest among U.S. traders, potentially offsetting any buying pressure demonstrated by larger on-chain participants. However, the index has since rebounded toward – 0.13, indicating a reduction in that pressure. Nonetheless, the reading continues to reflect a negative outlook, placing U.S. demand in a position of uncertainty. A sustained move above zero would provide stronger evidence of renewed buying interest and improve Ethereum’s recovery prospects.
