Fees increased sharply: The Ethereum network is more expensive than ever
- Do Ethereum fans have to assume that fees will continue to rise?
- What if the cryptocurrency hits the all-time high?
If you follow the data from YCharts, the fees incurred in the Ethereum network have risen sharply - an average of 10,20 US dollars per transaction. There were already two fee increases in 2020. At the beginning of September the average was even 12,54 US dollars / transaction for a short time.
But why do the fees in the Ethereum network seem to keep rising? In 2020 this was due to the so-called DeFi boom. Here the blockchain was used for various credit and yield activities. In some cases, the high fees even caused problems for those involved in being able to participate in DeFi activities.
On Twitter, the crypto YouTuber Lark Davis reported that the “fees are rising sharply” and that “DeFi is practically unusable”.
The traffic tolerance of the Ethereum network has been a problem for years. The transactors also had to deal with long delays such as high fees when the last bull run took place. Back then, the blockchain game called "CryptoKitties" caused a stir.
What does Ethereum 2.0 bring?
Finally, Ethereum has also initiated the network update that bears the name Ethereum 2.0. The network will be converted to a Proof of Stake Mining algorithm as part of the update. That said, better scaling for Ethereum follows. However, experts assume that the process will take years before it can be considered fully completed.
The Ether price is currently 1.200 US dollars. That results in a price increase of 64 percent - and that within the last seven days.
The cryptocurrency will cause a stir in 2021. It can be assumed that there are many private savers and investors who are looking for alternatives and who will invest in the altcoin market in addition to Bitcoin. And ether is particularly suitable here.