Ethereum network fees are reaching highs that create tension among users because it cost too much for transactions. The rival parties are taking benefit of this and are recommending individuals to use alternatives.
Even supporters of the Ethereum project acknowledge the network’s high fees. Users of Ethereum blockchain are now paying costly fees to send transactions or for decentralized applications, and smart contracts.
Gas Usage claim ATHs
Transaction fees over the blockchain are used and measured in Gas. “The daily gas usage is hitting ATHs and has remained over the 70 billion mark for the past month,” claims crypto analytical firm Glassnode. And fees have doubled since the beginning of the year. Glassnode added,”This is an increase of almost 2x compared to the beginning of the year.”
Etherscan revealed that on July 18, the network used 74.033 billion Gas. Yesterday, the figure reached 74.015 billion Gas worth $1.4 million.
The vocals of the network are also speaking about the current issue of high fees on using blockchain for transactions or decentralized apps. EthHub co-founder Anthony Sassano said:
“DeFi and Ethereum are not ready for mainstream adoption right now – if you are playing with it today you are a pioneer of a new technology. This is just the simple reality – it will get better over time – don’t miss the forest for the trees.”
The co-founder of NEO blockchain, Da Hongfei, asked people for alternative solutions. He said:
“The gas fee on Ethereum is approaching its new record. This ridiculously expensive cost becomes a heavy burden to users and an obstacle of defi transactions. It’s a golden window for alternative solution (sic) to overtake.”
Ryan Watkins, research analysts at cryptocurrency data firm Messari, said:
“It’s good because people want to use Ethereum, but the counter-signal is that it can’t necessarily handle all this usage, and therein lies the opportunity to provide an alternative.”
There are reasons why fees are surging and the major reason is Tether (USDT). Last month, the transactional fees of USDT reached $2.4 million.