Ethereum blockchain has witnessed great adoption in terms of active addresses, transactions, and users. Despite network expansion, Ethereum fees are continuously rising, which may prove bearish for the price value.
Recently, the crypto analytical firm Glassnode, Ethereum daily median gas price has surpassed 50 Gwei that is five times higher than the price recorded in April. Glassnode reported:
“The daily median gas price has increased by more than 5x since April, surpassing 50 Gwei yesterday for the first time in almost 2 years.”
Some in the crypto community believe that high transaction fees may prove fatal for the cryptocurrency in the long run.
Eth 2.0 is Crucial for Network
The discussion on Eth 2.0 has been going on for a long time, but still, its coming date is unknown. Eth 2.0 is very crucial for the network, otherwise, it is possible that another project may take its place in the future.
Prominent crypto analyst Qiao Wang recently stated:
“I’ve changed my mind after using a dozen of Defi platforms. So long as ETH 2.0 is not fully rolled out, there’s an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX.”
CIO and VP of Portfolio Management at Exponential Investments, Steven McClurg and Leah Wald, said:
“The issues inherent in gas costs have created congestion, which is a negative network externality. Congestion on Ethereum has led to poor user experience, especially for traders in this highly volatile environment, as their leveraged positions may be liquidated before they can act.”
Scalability will rise if fees go higher. Joseph Todaro said:
“For awhile the dark horse goes unnoticed. It doesn’t yet have its army of shillers who will provide warm feelings of confidence and certainty of success. But they are coming. […] It is time, once again, to look at the neglected and scorned ETH competitors.”
At press time, Ethereum is trading at $234.4 with 0.61% change in the past 24-hours.