As the native currency of the Ethereum blockchain scales, the gas fees for transaction processing are hitting the roof and some trade platforms have had to stall transactions, like ETH withdrawals so as to conduct maintenance on their exchanges. At press time, ETH is pushing fast towards the $2k mark. TradingView provides data to the effect that the ETH/USD pair are doing a good upward flight. The Crypto had hit $1750 and has slightly dipped to $1,696.97 at press time.
These recent upward turn of events for ETH and its network is reflective of the current bloom of DeFi coins. DeFi coins are ordinarily built on the Ethereum Blockchain. These coins have been the major driver for the attraction to the Ethereum network thereby indirectly influencing the upward scaling of the blockchain’s native currency. Another reason why ETH has been scaling may be because just this week, Investment outfit, Grayscale, launched a new massive purchase of ETH for its ETH Trust after stalling for a while.
Although the crypto keeps scaling, this price boom has an attendant vice to it- massively surging transaction fees. One displeased Nigerian ETH merchant stated that the transaction fees were enough to pay a sumptuous bride price.
Blockstream Developer, Grubles notes:
“This is a legit crisis. Going to have to stock up on popcorn to see how Ethereum digs its way out of this.”
On ETH’s grandparent currency, BTC, Kaiko, a data analytics outfit notes:
“Correlation is not causation, but the trend is quite clear: #Bitcoin’s meteoric price rise (and occasional crashes) correlates closely with movements of the U.S. Dollar Index (DXY),”
Apparently, it is the altcoin season and Ether refuses to be left behind.
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