Still problems on ETH, or rather on fees, which have reached science fiction prices, confirming the impossibility for the protocol to be at the same time the main hub of smart contract And blockchain in PoW validation.
Because of trade boom on ENS and its price record, the network of ETH once again found herself in enormous difficulty, with commissions splashing to levels not seen since big crash last May, when everyone was trying to close their transactions as quickly as possible.
A question that makes you think – and that makes the transition to a validation system even more awaited PoS, which should be by now, net of some technical problems, a matter of a few months. Let’s try to understand together what is happening in the world of ETH.
A situation that, among other things, constantly recurs whenever a token based on its protocols has an important price increase. Prices, at the time of this writing, are still well above the $ 50.
Too many transactions on the ETH network and prices skyrocket
ETH has been a victim, since the beginning of 2021, of its own success. Almost all of the projects he has had one spike of significant price and an extraordinary growth in volumes is hosted right on the network ETH. That being still a validation network PoW, it is difficult to scale.
This was the case during the last big boom of Shiba Inu Coin, as has been the case with all the cyclical booms of protocols such as Axie Infinity. In other words: Whenever the market is interested in an ERC-20 or other token supported by ETH transaction volumes grow, the network is flooded and transaction prices skyrocket.
The graph above, which indicates the latest ones 3 months however it is merciless. Even in moments of minimum there have been transactions over i $ 15, with a good part of September above $ 30 it’s a November which would seem to be even more expensive.
Behind the latest fees boom, the success of ENS
Yesterday, as we told on the pages of Cryptocurrency.it, it was the day of ENS, the name service of .eth, which after listing the DAO governance token, was affected by a huge volume of trading. Trading volume that has added to a network ETH already under stress.
The results are, once again, there for all to see. And make it necessary, if ETH it will want to continue to be the center of the revolution DeFi find solutions. These solutions actually already exist – and will involve moving to a system in Proof of Stake, which will be able to make the network more scalable and also to reduce waiting times.
In the meantime, however, those who manage networks that already use that validation system (or others equally scalable), could continue to erode small market shares. ETH. Solana, but also BSC from Binance And Cardano I’m at the door.
Markets continue to support ETH
The non-optimal situation on a technological level, however, does not seem to affect the markets too much, which continue to push ETH, even after the correction that brought it under i $ 4,700 yesterday.
What is happening now on the ETH network it’s not exactly new – and all hopes are pinned on the future of a network that will, like it or not, switch to another technological solution.