Ethereum (ETH) Fees Go Even Steeper
With high network load from a few apps, even regular transactions see their fees rise.
The Ethereum (ETH) network continues to work on the edge of scalability. Based on its rules of free competition, transaction prices are rising across the board. Now, fast transaction fees have inched up to $0.13, and even for regular transactions, fees are a few times higher at $0.09, with prices growing a bit each day.
In the past month, two chief smart contracts have used the network most actively - the Fair Win scheme, and the Tether smart contract. Both paid more than $1.3 million’s equivalent in fees in the past month alone. The Fair Win scheme may be on the way out, as it is probably a Ponzi and may end with a crash.
The Tether smart contract, however, is here to stay. There are now 1.95 billion USDT issued on the Ethereum network, out of a total supply of 4.1 billion coins. It is possible that more USDT will be issued in the future to be sent across the Ethereum network.
But the congestion is seen as a positive development for Ethereum, potentially giving value to the network, as well as boosting the value of ETH as a utility token. Ethereum transaction fees outpace significantly other networks.
As the network load grows, so does the price of ETH, which is among the top gainers in the recent relief rally of altcoins. ETH is up more than 21% in the past week, to $218.40, briefly breaking above $220.
ETH also sees increased positions on BitMex, showing confidence in the market reawakening. At current prices, ETH still has significant upward potential.
The current conditions have the potential to make or break ETH. In the past, BTC has survived immense network overloads and congestions, and the same may hold true for ETH. While fees are relatively small in comparison to daily trading turnovers, the usage of the network means Ethereum is one of the most useful fixtures in the crypto space.
So far, much fewer USDT have been minted on other networks such as EOS, TRON, and Algorand, and Ethereum looks like it will remain the primary carrier.