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Gas prices on the Ethereum network continue to creep up amid renewed record highs for ETH. Trading volumes on decentralized exchanges are also growing.
Ethereum (ETH) is arguably the most popular cryptocurrency in terms of the range of uses for its ecosystem. However, the prohibitively high cost of transactions on the Ethereum blockchain continues to be the main obstacle to further popularization of this altcoin, which confidently holds its position as the second largest cryptocurrency by market capitalization.
On the evening of February 5, the ETH rate again moved to record highs, attacking the $1,750 area. In part, the current situation with fees is also due to the growing interest in the segment of decentralized finance(DeFi) in general and in particular - to decentralized exchanges (DEX), operating on the basis of the Ethereum blockchain.
Give the last shirt for gas
According to the Gasnow resource, the cost of transactions with Ether peaked at around 500 gwei (Ethereum version of Satoshi).
Source: Gasnow
Based on these rates, users now have to shell out at least $7 even for slow transactions.Meanwhile, such decentralized exchanges like Uniswap (using smart contracts) have registered in recent days and transactions with commissions exceeding $70.
Crypto community members are outraged about this:
Ethereum headed for $2000?
The ETH rate has again moved its historical maximum and, as many market participants believe, in the coming months it may continue to grow towards the psychological level of $2000.
Ethereum has grown by about 140% since the beginning of the year. According to experts, this may be due to several factors.
The Grayscale investment fund, which reopened the Ethereum trust after a long break, could also play a role.
Perhaps for some, Ethereum at $2,000 sounds too unrealistic. However, strategists at Fundstrat Global Advisors LLC are confident that the currency could rise much higher. According to their estimates, the ETH rate can skyrocket to $10,500. Fundstrat believes that the main catalyst for Ethereum's growth is the development of the DeFi industry.
ETH also recently came in third in terms of the amount of funds blocked in staking. According to the latest data, about 2,95 million coins are blocked on the ETH 2.0 network. This is equivalent to 2,5 +% of the total amount of ETH coins in circulation.
Do you think that expensive gas will lead to a massive EXODUS of users from the Ethereum network? Share your opinion in the comments!
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