Sharp increase in Ethereum commissions

Colin Baseman

In recent years, you can see incredibly high commissions on the Ethereum network from time to time. Sometimes when searching for a block, the indicator reached $ 30 or even higher. In rare cases, commissions were $ 40.

Analysis of large commissions in the Ethereum network

Expert Nate Madry from Coin Metrics said that when trying to send an operation, the recommended commission exceeded $ 40. In other blocks, the commission was higher than $ 30. The expert said that in November, blocks in the Ethereum network were almost completely filled.

Experts admit various reasons for such a sharp increase in commissions. This may be, for example, an increase in the difficulty of mining coins due to the so-called "ice age". It is expected that this function will be postponed again, as a result, the creation of cryptocurrency blocks will slow down.

Another possible reason is the so-called DeFi or products in the field of decentralized Finance. The collapse in the value of Ethereum from 185 to 145 dollars per coin in just a week led to the closure of credit positions. In addition, contracts DeFi can be used for payment of high commissions to a specified time to perform the actions required.

Another version is the release of ERC-271 tokens, which are intended for the collectible market. In any case, the key consumer of resources in the Ethereum network is Tether. Before that, it was reported that the total volume of transactions with USDT was above $ 100 billion, which is 6 thousand percent more than at the beginning of the year.

In may, the load of Ethereum was the maximum, then the load of the blockchain exceeded the mark of 94%, at the moment the activity of its operation is noticeably lower – about 84%.

Expert: only a year is needed for the Tron coin to overtake Ethereum

Udi Wertheimer, who is a bitcoin developer, noted that in just a year Tron will be able to overtake Ethereum and take the lead among decentralized programs. Someone regarded his words as trolling. Mr. Wertheimer noted, "Tron will try to get ahead of Ethereum in 2020. I'm not kidding. The DeFi guys don't understand, but after purchasing ConsenSys, they will work in Justin's best interests."

The bitcoin developer made his forecast after tron Creator Justin San announced plans for the cryptocurrency's partnership with the Poloniex trading platform. Mr. Wertheimer confirmed that he owns a share of the crypto exchange. He is confident that Tron is ahead of Ethereum in terms of development, resistance to censorship, speed of operations and has a business acumen.

Many commentators have considered such statements as trolling. They also reported that Tron has a mixed reputation, as does its head, Justice Sun.

Why Ethereum can lose Tron and EOS

A number of experts believe that Ethereum will gradually lose its market share, and other promising altcoins will take its place.

Kyle Samani from Multicoin Capital believes that Ethereum is actively losing its leading position among decentralized application platforms. He is sure that other projects that offer similar solutions to users have been developed in recent months. All this will lead to a reduction in demand for Ethereum in the long term. It is still in the second position in terms of capitalization.

Patrick Barile, a top Manager at DappRadar, said that the structure of the decentralized software market has undergone significant changes. For example, at the moment only 28% of people who use such applications give their preferences to solutions based on Ethereum. More than a year ago, this platform was an absolute monopoly in its field.

Today, EOS owns 48% of active decentralized app customers, while Tron has only 24%. If we talk about the total number of dApps, Ethereum confidently takes the lead. The platform owns 40% of all apps on the market, followed by Tron and EOS with 30%.

Barile noted: "The reason for the popularity of other platforms is innovative protocols that offer faster transactions."

Travis Kling, founder of the Ikigai hedge Fund, noted that Ethereum experts do not plan to give up easily. Developers are considering ways to improve network bandwidth and increase the speed of operations. Significant Protocol updates should be made in the coming months. Mr. Kling concluded, "Scaling Ethereum is a long process. It is not easy to implement it."

Samson Mow called Ethereum a technological dead end

Samson Mow, a bitcoin maximalist and Director of Blockstream, actively criticized the Ethereum smart contract service. The main reason is poor scaling capabilities. Mr MOU considers Ethereum a technological dead end and expects it to cease to exist. He said in one of the social networks, "The more Ethereum is used, the faster It will die." In the article "What is a smart contract?" you can read more about these smart contracts of the platform.

Bloomberg published an article in which it was said that the Tether coin accounts for 90% of the use of the Ethereum network. This may result in a significant increase in commissions. This will lead to an outflow of users.

Samson MoE noted, "USDT can also be used in Liquid Network. This network has good scalability. In the future, this will allow you to use Lightning Network technology for assets similar to Tether."

Vitalik Buterin fought back these allegations. He noted that the bitcoin blockchain is also crowded.

This is not the first time when experts bury Ethereum. Nevertheless, the second-largest cryptocurrency has repeatedly won back its positions. Many believe that now is the time to buy a few coins. If the exchange rate increases, they can be sold at a good margin in the future. Another option is to keep the coins in the long term.