Ethereum is Struggling Amidst The DeFi Growth
Financial Magnates analyses the fate of Ethereum. A couple of days ago, ETH saw a massive price drop and BTC as well.
Now, the crypto market looks better with most coins trading in the green.
At the moment of writing this article, ETH is trading in the red, and the coin is priced at $383,61.
ETH-miners are ranking in cash
The online publication mentioned above notes that for some ETH users, the rent is too high.
ETH-miners who are responsible for confirming transactions on the Ethereum network-were ranking in cash.
The on-chain analytics company Glassnode notes that miners on the network have earned more than $500k in only one hour on September 1st.
The huge amount of fees has been collected as the price of ETH rallied 10% to $486 which was a new yearly high, before the drop in price that took place after that.
The same online publication also mentioned the fact that this rally was believes to be related to the launch of Sushiswap, which is a fork of Uniswap. This is a DEX in that exists in the form of two smart contracts on Ethereum.
To those replying with “gas fees are too high”, my answer to that is “well then more people should be accepting payments directly through zksync/loopring/OMG”. Seriously, scaling to 2500+ TPS for simple-payments applications is here, we just need to… use it. https://t.co/J2KMJyLKv6
— vitalik.eth (@VitalikButerin) September 1, 2020
“Indeed, the reason that the network fees went up was because of Ethereum’s popularity: the more users and protocols that the network attracts, the more transactions are sent through the network. The more traffic there is on the network, the more congested it becomes; as it becomes more congested, fees go up, and transaction times slow down” the online publication notes.
DeFi movement, on the other hand, is gaining more and more popularity.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.