Ethereum Rising Gas Fees Causing Major Concerns

ByTroy Morris

Mar 21, 2021

Although the price of Ethereum has continued to impress all the people in the space, the digital assets transaction fees have continued to be a source of concern for users. In simpler terms, the price of carrying out transactions on the network has seen a massive increase after the boom in the decentralized finance sector around October last year.

Going alongside the rise in gas fees, we have seen massive congestion on the network as most people have said the congestion is behind the rise in fees in the first place. While the fees issue is something to note, it is also worth mentioning that the demand for digital assets is rising.

Ethereum transaction fees rose as high as $39 in February

The decentralized finance sector has also seen a massive increase in the demand for coins in the space which has also affected the price of Ethereum. A recent report compiled by an analysis firm has shown that since February 23, the average amount for transaction fees paid on the Ethereum network is now $39.

Asides from that, the price for transactions on the digital asset network flew to around $16, which would be considered a very high price compared to other digital assets. This has pushed out small-scale traders who look to the sector to carry out small-scale transactions as only high-value entities can effectively carry out their activities. With the NFT craze still very much around, it is only a matter of time before the cost of transactions on the network further rises again.

OKEx CEO believes that Ethereum would solve the issue

Given his review of the recent happenings in the Ethereum market, the CEO of OKEx, Jay Hao, has mentioned that Ethereum is currently facing all other layer one solution tokens. Presently, everyone is Ethereum, which includes so many developers judging by the number of dApps rolled out in the space.

But while Hao hopes that Ethereum might have this under control, he notes that the community is no longer patient with the rolling out of Ethereum 2.0. This is as a result of so many rival blockchains that have come into play. These blockchains have used the few modifications that they can get their hands on to modify tokens to carry out transactions at a cheaper rate while promising speed.

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