Ethereum Fees Tripled in a Week.
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Transaction fees on the Ethereum network continue to skyrocket.
On Tuesday, Aug. 11, the median hit $ 1.57, hitting a new high since early 2018.
Commissions are up 140% over the week and up 550% over the month, according to Bitinfocharts.
After breaking above $ 400, the coin did not hold on to the conquered positions and rolled back down. On Wednesday night, August 12, ETH is trading just above $ 379 on the BitXmi crypto exchange. Over the past day, the altcoin capitalization fell to $ 42.663 billion.
However, despite the decline in the value of ETH, transaction fees on Ethereum continue to rise.
According to Etherscan, commissions are now at their highest level since summer 2015. This is a wake-up call for network developers, as high fees are forcing users to switch to blockchains with lower transaction fees. In this regard, the key competitors of Ethereum are Tezos and Cardano.
Analyst Alex Kruger clarified that the sharp increase in processing fees occurred on a monthly basis. He declared:
The 30-day average gas price recently hit levels that were only seen in the summer of 2015, that is, immediately after the launch of Ethereum.
How to reduce Ethereum Fees?
Many observers, as well as the developers of the ether themselves, believe that it is necessary to launch the ETH 2.0 update as soon as possible. It will improve network performance and reduce fees.
Back in June, Messari team spokesman Qiao Wang tweeted that if fees remain high, Ethereum will face massive user churn. He also added that sometimes for one transaction you need to pay up to $ 10 and wait for its processing for about 15 seconds.
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. https://t.co/vXAAFET3YK
— Qiao Wang (@QWQiao) June 28, 2020
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