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Why does the Ethereum plummet today (why is Ethereum particularly congested today)

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Why did the Ether plummet today

Why did the Ether plummet today? Why did the Ether plummet today? Because the supporting price of Ethereum fluctuated significantly when the market fell According to the chart of OKEx Bitcoin Strategy BTC/USDT, it can be seen that the price of Ether experienced significant fluctuations yesterday. From a small timeline perspective, the market has gradually started to decline for a period of time, but due to changes in technical indicators, the price of Ether is still operating in a downward channel. Moreover, the rise and fall in the past two days have been significant, so currently, if we can effectively break through the pressure level on the upper track at this stage, it is expected to rebound further

Why is Ethereum so congested today

Why is Ethereum so congested today? What happened on the Ethereum network today? Why is the handling fee of Ethereum extremely high today Due to the sharp rise in the price of Ethereum, traders have to spend a lot of time processing transactions. As a result, the cost of gas on Ethereum also soared, which led many traders to wait longer in peak hours to complete transactions (that is, about one hour). Due to the influence of factors such as the very fast transfer speed and low cost of ETH, Ethereum has now reached the demand for nearly 200000 large amount payments per second, and hundreds of blocks are confirmed every day According to data provider Etherscan, the Ethernet handling fee today is $9.68 per transaction, which is more than twice the average level since August 2018. At the end of 2017, Ethereum had only about $10 million in fees, and now it has exceeded $20 million. But what is the reason for the high network service charges of Ethereum? Is the transaction time of Ethereum network too long? Let’s take a look at the historical chart of Ethereum. We can see that since the beginning of November last year, more than 1 billion dollars worth of tokens on the Ethereum chain have been transferred to the Ethereum blockchain. However, the number of these assets is almost the same as that of Bitcoin, so the activities in the Ethereum ecosystem become less and less. What will happen when we use these Cryptocurrency as a portfolio. If there were various circumstances that could explain Ethereum before, such as the problems during the DeFi boom this summer or other events about Ethereum, as well as the technological progress related to Ethereum 2.0, then the use of gas in Ethereum has indeed increased today, especially in the past few months, the handling fees of Ethereum have increased significantly

Of course, there is another important question: why is the price of Ethereum so volatile? This is because the project development team has been studying how to make Ethereum network decentralized since the beginning; Then they found that this mechanism is not secure for ordinary users, and in the early stages, it is also very attractive to ordinary users. It can even be said that many times, they are not willing to bear the risk or lose all their funds on their own. So when we consider this issue, we have to consider the development of Ethereum itself

Although the Ethereum network has developed rapidly and is still in its infancy, with the recent growth of applications on the Ethereum network, the overall efficiency of its application layer has also been significantly improved, especially in the DeFi field. For example, Compound is a lending agreement on the Ethereum platform. The project allows people to issue and sell ETH on their smart contracts – a relatively simple solution that can help secure stable income on the Ethereum blockchain. However, since most tokens in the current Ethereum network are generated through liquidity pledge, the more liquidity is released, the more tokens will be dug up, thus promoting the prosperity and development of the Ethereum ecosystem,

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