Ethereum (ETH) Network Fees Surpass Bitcoin (BTC)
The Ethereum network sees increased activity and peak fees due to emerging congestion.
The fees on the Ethereum (ETH) network in the past days were close, or higher to those paid on the Bitcoin (BTC) network, denominated in US dollars. The trend has been observed for a few days, with ETH fees finally crossing the threshold.
But this type of “flippening” does not mean Ethereum is anywhere near displacing the Bitcoin network in its uses. Rather, this is the result of higher fees, due to the specific economics of paying for gas. Currently, several smart contracts are taking over the network, including a growing investment scheme that looks like a Ponzi.
A large percentage of the load comes from Tether (USDT), one of the payers of big fees for fast transactions. Other decentralized finance projects also rely heavily on the network, increasing the overload.
The current situation also revealed that BTC and ETH are the most widely used coins plus networks, while other projects with big promises hardly register activity.
Still, block rewards remain the chief source of income for most networks, compensating for the low fees. But in the future, there are expectations that network fees may grow higher in comparison to block rewards.
The increasing fees on the Ethereum network also suggest that the project may not be as scalable as promised. Instead, it generates a competitive economy due to limited resources.
Ethereum developers were also taken to task for promising scalability during the ICO phase in 2014, while the network revealed its problems much later.
One of the first significant events of Ethereum overload was the arrival of CryptoKitties. Later, with more distributed apps and decentralized exchanges, the network indeed proved attractive for developers, though not delivering the speed and computational power it promised.
ETH market prices remained around $206.39, sliding from the recent highs. ETH managed to recover the $200 level as the coin is also one of the most liquid assets, seen as having upside potential after hovering at lower prices for months.
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