Why is Ethereum network congested (why is Ethereum rising all the time)

08/05/2023 22:09 • NFT Newsflash • 101 views

Why Ethereum is congested Editor’s note: This article is from Blue Fox Notes (ID: lanhubiji), and Odaily Planet Daily is authorized to reprint it

Why is the Ethereum network congested? In a recent tweet, we mentioned the upcoming arrival of Ethereum 2.0, a process known as’ London ‘, which means it requires a time window to process transaction and block information, which is currently the most worrying thing. However, in fact, Ethereum’s network speed is very fast, the price of gas is relatively high, and the cost of gas is also very low, which makes the network extremely crowded. So, why is this happening

According to BitInfoCharts, every transaction on Ethereum network costs about 1 million Ether (about $8). However, if these funds are deposited into one of the addresses and the wallet is used, it is equivalent to transferring all other funds to another account. Therefore, if you transfer money to another address one day, your funds will flow to the exchange, and you may accidentally lose the key and be unable to complete the payment

Of course, it may also be because some miners have begun to use this opportunity to mine new Cryptocurrency or tokens, and they hope to obtain more resources for mining; But there is also a situation where when you send ETH from the exchange, your ETH will be sent to multiple different addresses to obtain the corresponding number of new tokens, so users often have to bear additional risks at this time

On the other hand, due to the high complexity of smart contract codes, and the efforts of developers to let everyone have the opportunity to participate in the blockchain industry, this has brought about the Ethereum network congestion problem, which has caused the decline of the service fee income on the Ethereum network. (Note to Blue Fox: In order to reduce the cost of GAS, we must increase the gas limit of Ethereum to avoid such a situation)

As pointed out in our previous article, many applications in the Ethereum ecosystem are generated in this way because of the high consumption of gas. As more and more protocols enter this field, these services may affect the user experience. Although some projects have introduced some new functions or are designing various functions for their products, such as allowing users to issue ERC-20Token on the Ethereum blockchain, allowing smart contracts to create customizable applications, and allowing users to make proposals for assets However, despite this, there is still a significant amount of load, especially when it comes to running certain validators and state channels on the network. Therefore, network operators need to note that the reason why Ethereum network is expensive is that its capacity is huge and its transaction costs are quite stable

In addition, since most blockchains are controlled by a single entity, Ethereum itself is not supported by any individual or organization, resulting in congestion

Why has Ethereum been rising

Ethereum has been rising, why has it been rising recently? The answer is that Bitcoin broke through $50000 on January 6th, setting a historic high since December 2017 Nevertheless, according to CoinDesk data, ETH’s trading price is currently close to $200, indicating that investors’ demand for Ethereum is growing

But from a historical perspective, the price trend of Ethereum is not always optimistic. According to Glassnode’s data, ETH has fallen by over 30% since 2018. However, as time passes, this trend may continue. (EWN)

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Why is Ethereum network congested (why is Ethereum rising all the time)

Why has Ethereum been rising

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