Last night at 3:30 am UCT, GAS – the unit of measurement well-known for quantifying work done on the Ethereum network – received a sudden burst of volume that pushed it’s price up by 50% in less than an hour.
24-hour volume increased from less than $1 million to almost £8 million in the hour and it is now at over $16 million – the highest in 8 months. The price, which jumped from around $5 to a high of $10, has now corrected sightly back $7.87.
The movements are fairly significant considering GAS volume has been at some of it’s lowest ever for the past few weeks and the price hasn’t moved much from around $5.
Ethereum miners use the price of GAS and the GAS limit to maintain the Ethereum network so that it doesn’t get overloaded with spam or unnecessary usage. Based on the price of GAS, miners receive payment in small increments of Ether. However, this recent surge seems to be linked to Ethereum’s Chinese competitor NEO, which recently announced the mainnet date for it’s Neo Name Service (NNS).
The NNS is a system that allows domain mining to website owners who use the .NEO top-level domain. Since GAS will be used to bid for domains on NNS, this may explain the sudden interest in the token. Although the movements will undoubtedly still have an effect on the Ethereum network too.
Just yesterday, Fundstrat’s Thomas Lee spoke to CNBC about Ethereum’s recent 70% downturn and how he believes it’s “about to rally strongly.” Ethereum is enjoying a 7.3 percent price increase today along with a number of other cryptocurrencies in the green, although nothing quite like the impressive GAS rally.