Ethereum is Literally Unusable; Fees Surge to New ATH as Dogs Take Over the Network
More than $5.7 million were paid by Ethereum users in one hour. In the past 24 hours, Ethereum generated almost $90 million in fees compared to just $5.7 million by Bitcoin.
This first day of the week turned out to be quite volatile.
The price of Ether broke through the $4,000 barrier to hit a new all-time high of $4,200 and then to see a much-needed pullback to $3,760 after a run-up of 110% in less than 20 days.
As of writing, ETH/USD is back around $3,930 and 0.070 against BTC, down from yesterday’s high of 0.074 BTC. BTC -3.51% Bitcoin / USD BTCUSD $ 37,408.63
-$1,313.04-3.51% Volume 36.44 b Change -$1,313.04 Open $37,408.63 Circulating 18.74 m Market Cap 700.95 b 9 h 2.3 Million UK Adults Now Hold Crypto Assets, 10.5% More than Last Year: FCA Report 11 h China’s State Media Promotes Bitcoin Miners Going Green in Country & Points to Wasted Energy 11 h SEC Delays VanEck Bitcoin ETF Decision Again, Another 45 Day Wait Period
ETH: Large open interest build up on $5k strike pic.twitter.com/v2bKB5TQdx
— skew (@skewdotcom) May 11, 2021
This volatility has the fees on the network skyrocketing. As we reported, the fees started rising ever since this month started, providing not even two weeks of reprieve from high fees after the Berlin hard fork.
On Tuesday, the average transaction fee hit a new all-time high of almost $60. But this is just the average fee on the Ethereum network; if you have to make use of a DeFi application, then it’s extremely brutal as people are noting that it costs $300-$400 for one swap.
On Monday, more than $5.7 million were paid by Ethereum users in one hour. In the past 24 hours, Ethereum generated almost $90 million in fees compared to just $5.7 million by Bitcoin.
The gas fees have also reached 300 Gwei, but it is average and not taking into account other DeFi protocols or a fast transaction.
Because of this, people are choosing the likes of BSC and Solana. “I quit swapping and farming for the most part on ETH months ago never looked back, feel like I missed nothing. just as good or better returns on farms and tokens on alternative chains, and the fee costs me $1 to maintain them, not $500,” said trader MoonOverlord. BNB -1.77% Binance Coin / USD BNBUSD $ 348.45
-$6.17-1.77% Volume 1.35 b Change -$6.17 Open $348.45 Circulating 153.43 m Market Cap 53.46 b 13 h Another Algorithmic Stablecoin Crashes to Death; Mark Cuban Promoted TITAN Losses 100% of Value and Goes to Zero 4 d Yearn Finance TVL and Total Users Hits a New ATH Amidst Weak Price Action 1 w Layer-2 Scaling Solution Polygon Records Continued Growth, But May Not Bring Fees Down on Ethereum SOL -4.74% Solana / USD SOLUSD $ 38.49
-$1.82-4.74% Volume 396.86 m Change -$1.82 Open $38.49 Circulating 272.64 m Market Cap 10.49 b 10 h Solana Leads $3M Funding Round in Blockchain Data Platform PARSIQ 1 d Reddit Co-founder Holds 'Quite A Bit' of Ethereum, But Also Invested in Solana, Polygon, & Optimism 2 d Polkadot's DOT To Debut On Coinbase Pro Trading Platform Tomorrow
This is why neither of the layer 1 blockchains is in the top 35 fee gainers, as per Crypto Fees.
These high fees on Ethereum come in line with the growing usage as transaction count, and active addresses continue to moon.
On Monday, canine-themed coins like SHIB, LEASH, AKITA, KISHU, and ELON inspired by Dogecoin have been taking over the internet and Uniswap along with Ethereum. At one point, SHIB-ETH accounted for the highest, over a billion-dollar volume on the platform. Still, it’s the fourth largest traded pair on Uniswap with $125 million in volume.
SHIB was actually listed on Binance this week due to “a large number of users demanding it, to the point where we ran out of ETH deposit addresses,” said CEO Changpeng Zhao. “Never happened before for any other ERC20 coin.”
Muck like cats, Crypto Kitties clogged the Ethereum network in 2017, looks like it’s time for dogs to do the same this bull run.