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BCH $505.05 (-6.6%)
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Ethereum Gas Fees on the Surge, ETH 2.0 to Provide Solution

Ethereum Gas Fees on the Surge, ETH 2.0 to Provide Solution

Ethereum is preparing its major mainnet upgrade to solve network scalability and issues of high gas prices. While still under development, some are not convinced.

In the past months, the DeFi market  has been making noise that could be heard all over the crypto industry. Today, the DeFi space has secured a total value locked (TVL) amounting to $7.85 billion. This is due to the high volume of DeFi projects  built on top of the Ethereum platform.

Ethereum has made it possible for many startups to onboard their projects on its platform easily. This convenience provided by the ETH platform is also one reason why it is suffering network congestion nowadays.

In order to use the ETH network efficiently, the users will need to pay gas fees. This gas fee has been seen to rocket high in the past month, mainly because of the high demand that investors are putting in the platform.

 Daily total gas fees on the Ethereum network. (Source: coinmetrics.io)
Daily total gas fees on the Ethereum network. (Source: coinmetrics.io)

Ethereum 2.0 is one of the solutions that has been eyed by many in the crypto community. It is said that the mainnet upgrade will allow the ETH platform to be more scalable and provide an answer to the ever-increasing cost of ETH gas.

On the other hand, DeFi experts like Sergej Kunz and Mounir Benchemled are not in favor of just relying on the ETH 2.0 upgrade in solving the increasing cost of gas. For them, the platform’s upgrade does not anticipate the DeFi hype, and for the upgrade to be scalable, it would take time mainly because of security issues.

Aside from industry experts, the issue of high gas fees in the Ethereum platform has also reached the crypto Twitter community. The Altcoin Buzz (@Altcoinbuzzio) and Lord Shepherd Tulips de’ Medici (@cryptodemedici) are some of the Twitter members that do not believe in the capability of ETH 2.0 in ending the high transaction fees.

These issues have made Ethereum Co-Founder Vitalik Buterin react:

Today, we still do not know what simply can solve the ever-increasing gas fees in the ETH Network. But, one thing is for sure: the DeFi space is becoming more mature and continues to show no signs of slowing down. This is a good sign despite the global market economy’s instability we are experiencing at the moment.

A dedicated market analyst focused on the highs and lows of the cryptocurrency market. With a background in Business Administration, he tries to unfold his financial perspective to global readers.