50% of Ethereum Miners Voting for Increasing the Gas Limit; Will It Reduce Network Congestion?
- Increasing the gas limit to reduce network congestion
- ETH/USD outperforming Bitcoin
Recently, Vitalik Buterin, the co-founder of Ethereum warned that the increased utilization of the network could result in larger transaction costs, which in turn, could deter institutional users from using Ethereum.
The world’s second largest blockchain network has been experiencing congestion in the past couple of weeks, with its utilization reaching 90 percent.
Increasing the Gas Limit to Reduce Network Congestion
In a Reddit thread, Buterin discussed the effects of Tether on Ethereum in detail. He said that developers are actively working on one or more layers on the network that would solve its high fees problems.
However, until that happens, increasing the gas limit is the only solution to reduce some of that congestion.
“I’d recommend starting a Reddit/Twitter campaign to promote the cause of pushing the gas limits up. Historically the large mining pools have listened to community pressure,” Istanbul fork could allow more transactions with the same gas limit,”
The average fee of transactions on Ethereum has remained below $0.2 for the most part but starting September has begun to increase.
50% of the miners have come together in support of the idea of increasing the gas limit, with F2Pool and Sparkpool, that represent 40 percent of all Ethereum miners already are in favor of this.
However, Buterin doesn’t want the community to rush into this as he said a bigger gas limit jump at the same time as the Istanbul fork would be safer.
Istanbul network upgrade, initially scheduled to go live in early October, is now delayed due to Parity implementation.
ETH/USD Outperforming Bitcoin
Ethereum price, meanwhile, is seeing the positive movement as it went up to $193 from $176 last week.
ETH/USD outperformed Bitcoin, surging 4% in the morning Asia session on Monday, traded at above 100 SMA.
This positive price action seems to be supported by the fundamentals, with the network’s gas usage limit hitting an all-time high meaning demand for Ethereum network is high.
With RSI indicating ETH/USD overbought — last two times this was followed by a price correction — ETH price slid down.
Currently, Ethereum is trading at $189.15 with 24 hours gains of 0.79%, as per Coincodex, while the market is in red.
Ether is marginally up relative to bitcoin in September.
The discussions recently have been around fees with ~100k transactions currently pending. pic.twitter.com/1d9Cp2jgSR
— skew (@skewdotcom) September 16, 2019