Ethereum Becoming Unusable Due to Being Super Slow or Insanely Expensive
- Ethereum price is holding just fine as ETH slowly makes its way towards $400. Currently trading around $388, the digital asset has seen an increase of 62% in the past month.
- Investors continue to be bullish on this uptrend as more and more traders go long on the crypto asset.
The ever increasing ETHUSD longs have reached $700 million in notional volume, spiking 10.5% in the past ten days, and 127% in the past three months.
However, Ethereum's daily active addresses have hit a 67-day low, closing out at 351.3k addresses transactions on the network. The last time Ether’s DAA was this low was on June 7th.
This is possible because of the ever-increasing network fees.
ETH fees are going absolutely insane. This is hourly total fees in USD: pic.twitter.com/YD7ai22E6K
— CoinMetrics.io (@coinmetrics) August 12, 2020
The network fees are going insanely high as such more than 42% of the miner revenue is currently deriving from the network fees. And it makes sense that the hashrate of the Ethereum Network has also grown to November 2018 high.
Going to quit trading and become an Ethereum miner and retire after two weeks
— Josh Rager 📈 (@Josh_Rager) August 13, 2020
On-chain transaction fees on Ethereum that first outpaced Bitcoin in June have extended this gap to $1 million a day now.
The second-largest network is working at full capacity with the gas used nearing all-time highs, which have been making new records every other day. But all this usage is making the network too slow to use or too costly.
Ethereum geting unusable. Either too slow or too expensive.
— Alex (@classicmacro) August 13, 2020
The average fee per transaction on Ethereum had reached $7.43, the highest since 2015, when the network was launched. Median transaction fees, which stayed below historic highs of $3, have also gone up to $3.89, as per Blockchair.
It was in mid-July when transaction fees started to soar on the network coinciding with the surging activity in the DeFi world.
— Prince (@13Prince31) August 13, 2020
The median gas price that has spiked to 41.39 Gwei, with average gas price at 223.68 Gwei, has been because of decentralized exchange Uniswap V2, most popular stablecoin Tether (USDT), and DEX aggregator 1inch which have been the top gas guzzlers, as per Etherscan.
Other prominent gas users include Chainlink that continues to hit new ATH, Curve DEX that is seeing explosive growth, and just launched, collapsed, and is on to launch another version, Yam.
All the activity has pushed the pending transactions on the network to reach 176,431; this congestion further drives the fees higher.
While Ethereum developers are working on reducing fees and scaling the network, the solution remains months away.
Transaction fees on #Ethereum are less than 3 cents away from their all time high.
The number of transactions per day is also way up so clearly people are happy to pay for the service.
Overall, I'd say these are bullish fundamentals as the network is now retaining more value. pic.twitter.com/wsIb43P0P1
— Mati Greenspan (Tweets are not trading advice) (@MatiGreenspan) August 13, 2020