Ethereum is trading above $ 1530, but the high transaction fee downside. The high cost of gas in Ethereum makes it clear that the altcoin has removed the barrier to entry of small investors and beginning traders in retail trade. While it’s a popular view in the trading community that you don’t need to own a single Ethereum or Bitcoin to reap the corresponding benefits in your portfolio, it has become difficult for retail investors to own small amounts given the current conditions.
Due to the high transaction fees, there is almost no economic viability for small account holders to trade on the Ethereum network, leaving Ethereum solely as the whales’ playground for on-chain transactions. This directly contradicts Ethereum’s promise to be the future of finance.
DeFi first used gas to cost a dollar or two, but now, smart contract transactions cost between $ 30-100. “The future of financeThe expectation was very different, and only the future of the whale would make it difficult to distinguish between the present and the future of finance.
There are apps on DeFi competing to get users off the ETH network. First two DeFi projects in direct competition with Ethereum Polkadot and Solana. These two projects are planning to move to other Layer 1 chains, which allows the investment to flow out of Ethereum. There are other projects that might consider migrating if network charges continue to rise.
Additionally, if gas fees remain high, decentralized exchanges could lose more users and centralized exchanges with security limitations may be the only option for retail merchants. Although the adoption of Layer-2 continues, traders are facing high network fees until then.
Binance Smart Chain has become increasingly popular in the past few months, and this can be attributed in part to high network fees on Ethereum. In addition to DeFi projects that could benefit from the investments poured from Ethereum, Binance Coin had a fair share of entries and the price rally can be attributed to Ethereum.
To be informed immediately of the latest developments Twitter Join our page!