Ether (ETH) recently entered the top 100 assets in terms of market cap, the only crypto on the list along with Bitcoin (BTC). ETH is on its way to its ATH, a price hike that is accompanied by an explosion of gas on the network.
Gas explosion to start the year
According to statistics fromYCharts, the average transaction costs on Ethereum reached abnormally high levels at the start of 2021. On January 3, 2021, the average value of ETH transaction fees was $ 10.20.
In 2020, they had reached their highest level twice in September 2020: a first time at the beginning of the month at $ 12.54 and a second time, in mid-September at $ 11.69.
The increase in these fees is largely due to the boom in DeFi, which uses the network for many yield farming and lending operations.
ETH2 for an infrastructure worthy of DeFi
For many analysts, this gas explosion is not bearable for users with relatively low volume transactions.
In a tweet from January 4, 2021, the YouTubeur Lark Davis had indicated that this increase in gas made DeFi unusable.
Traffic congestion on Ethereum is a recurring problem. In addition to these high fees, users have experienced significant lags in the execution of their transactions.
Ethereum 2.0 Theoretically, this problem should be solved with functionalities allowing to scale the network, and in particular with the transition from Proof of Work to Proof of Stake.
The effective deployment of theETH2 could take several more years. The beacon chain was launched in early December 2020. The staking on theETH2 is already enjoying great success and theEther benefits from these first steps with a nice rise in its price.
Is Vitalik Buterin and his team wrong to bet everything on ETH2 to solve the problems of gas congestion and explosion on Ethereum? Especially since they have embarked on a process that is difficult to reverse given the time taken to fully deploy the new version of the network. ETH bulls appear to run faster in exploding the price of Ether than ETH developers in launching features to boost blockchain’s transaction processing capabilities. Bitcoin is used to “bubble” accusations, soon to be Ether’s turn?
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