Ethereum Network Utilization Spiked To 90% Level, Vitalik Says It Has Been ‘Almost Full For Years’
- Ethereum running out of capacity, Tether is the one behind this
- Ethereum’s technological transitions, Jeff Dorman, Arca CIO says isn’t a guarantee and is till on the horizon
Ethereum network utilization has soared into the 90% level, as per tracker Etherscan.io. Last week, Ethereum co-founder Vitalik Buterin made a stark warning that the network is, in fact, running out of capacity.
Buterin also noted that the cost of processing transactions in Ether may also get too expensive for some users. This is because as utilization increases, transactions costs follow, which could make potential corporate users take a step back from using Ethereum.
Unlike CryptoKitties, two years back that clogged up the Ethereum, this time it’s the controversial and immensely popular stablecoin Tether (USDT).
In the last 30 days, it even paid the processors on Ethereum’s digital ledger $260,000 in fees, about 17.5 times more than CryptoKitties.
Tether taking up all the space means, less capacity for developers.
We have already seen how Tron and EOS are becoming popular platforms for decentralized applications (Dapps).
Developers, meanwhile, are waiting for the Ethereum to increase its network capacity.
“So the biggest implication today is simply that developers may be incentivized to wait until this transition happens before fully committing to build on Ethereum,” Jeff Dorman, chief investment officer at Arca told Bloomberg. “Tether isn’t helping.”
“The Ethereum blockchain has been ‘almost full for years,”’ Buterin told Bloomberg. “I think it’s still good to develop apps, but anything substantial should be developed with scalability techniques in mind, so that it can survive higher transaction fees that would come with further growing demand for Ethereum. In the longer term, Ethereum 2.0’s sharding will of course fix these issues.”
Although, Ethereum is working on its Ethereum 2.0 version, a move to proof-of-staking, even this transition, “is not a guarantee and is still on the horizon,” Dorman said.