The second-largest cryptocurrency is all rampant due to its ongoing price momentum surpassing $1688 in a quest to print a new-all time high. The Ethereum Beacon Chain fueled the insane price rally in early December. With the commencement of this year, 2021, the cryptocurrency has surpassed all its previous highs to create a significant milestone since its inception.
The breathtaking rally demonstrates the increase in the network activity of the Ethereum Chain. While witnessing this upward trend, the network has made it quite expensive for platform users to transact due to its rising gas fees. The Ether price spikes are directly promotional to network transaction costs.
Ethereum transactions fees to limit future adoption
According to Coinmarketcap, a crypto data-aggregator platform, Ethereum stands at $1618 at this publication time. Since December, the escalation has taken place, driving the price to a phenomenal level beyond the expectation of users. The DeFi momentum has significantly contributed to this.
However, the primary concern is high gas fees that are sky-rocketing due to increased network activity. The block explorers have recorded as high as $20 as transaction fees in the history of Ethereum’s journey. Even the smallest of the micro-payments is substantially increased for ordinary users.
Currently, the viable alternative to Ethereum’s surging gas fees is Justin Sun’s Tron Foundation. Ethereum is comparatively less scalable with latency issues due to the ongoing network congestion. The CEO of Tron Foundation, Justin Sun, invited famous Ethereum developer Andre Cronje to build applications on Tron Network. Thus, attracting new opportunities and driving crypto to the mainstream.
In case this issue prevails for a longer-term, it is evident that Ethereum will definitely become a store-house of value but will lack utility. Platform users will drift from Ethereum Network because of the hindrances relating to expensive transactions, low throughput, and delayed turnaround time.
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