Ethereum has been stagnant in the recent period but has definitely been an major attraction for investors. This period has seen the demand for Ethereum increase every single day. It is primarily due to decentralized finance — or “DeFi.
Newsbtc.com reported that coins and protocols pertaining to this space are largely based on Ethereum, meaning that the network has racked up countless transactions attempting to satisfy DeFi users.
According to Etherscan data, transaction fees are reaching highs not seen since the summer of 2015. It is a clear indication that for the developers that some sort of solution is required or else users seeking low-cost transactions and smart contract interactions will be squeezed out.
Economist Alex Kruger shared a data which said that the transaction fees are reaching highs not seen since the summer of 2015.
“High demand is driving Ethereum gas prices up. The 30 day average gas price has recently reached levels only seen in the summer of 2015, right after Ethereum launched.”
However, a few analyst have claimed that a quick fix is required to the issue. It could otherwise lead to smart contract focused blockchains such as Tezos or Cardano are expected to chip away at the market share that the network has carved out for itself.