Ethereum Developers Test More Capacity As Network Gets Congested and Fees Rise
The Ethereum network is too clogged these days. This one of the most unfortunate side-effects of creating a successful network. As time passes, they tend to become too clogged and slow for their own good and people start to abandon them. This will not happen to Ethereum, though, if the devs have any say on it.
Several developers, including Vitalik Buterin, the co-founder of Ethereum, have recently claimed that there are people testing new ways to reduce transaction fees and increase the performance of the ETH network.
Now, some of the developers are considering to shift to 10 million gas (the token that is paid for performing operations in the network), which would increase the capacity of the whole network by 25%.
One of the main reasons why the network is so expensive and slow right now is because the popular Tether stablecoin has decided to launch Ethereum-based tokens. As they work on top of the Ethereum network, they make it harder for people to use Ethereum because several transactions are being made with the newly-created assets.
The impact on prices was so big that people went from paying around $0.11 USD per transaction to $0.39 USD, over three times more than that. Transactions are so important because all Ethereum-based apps need to pay them to work properly.
Initially, these changes impacted the price of the token, which went up but started to go down soon afterward, as the price of BTC lowered and took the whole market together.