The high fees that users have to pay for transactions in Ethereum are driving the network to a difficult crossroads. Currently, it costs an average of $ 15 to complete any transaction on Ethereum. A figure that alienates users from the blockchain, which is reinventing financial services through its decentralized apps and smart contracts. Despite this, Ethereum, in its contradictions, continues to bring joy and sorrow to the participants in its ecosystem.
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The data shows that in addition to continuing trading at $ 1,555 at time of publication, miners raised $ 830 million in January, a record high. However, it should be remembered that the increase in miners' profits is associated with an increase in Ethereum activity, the cost of cryptocurrency and gas prices.
Ethereum transactions
In fact, the charts show that over 40% of the profits generated from mining Ethereum come from the high fees that users pay to interact with it. While tariffs driven by high gas prices benefit miners, they are a double-edged sword for the network. Coin Metrics charts show that the commission rates on the Ethereum network were much higher than those of Bitcoin.
If the ambition to bring the price of Ether to over $ 3,000 or $ 10,000 by the end of the year is met, users will be limited to interacting with the apps and other projects that exist on their blockchain. Leaving the network at the disposal of corporations.
When the network becomes congested due to its widespread use, gas prices rise and users stop using it due to high on-air transaction fees. In fact, many of these users are already looking for alternatives on networks like Polkadot.
Despite the high profitability of Ethereum miners, Bitcoin miners continue to be higher. The largest blockchain in the industry reported $ 1.1 billion in profit to its miners in January. This represents an increase of more than 60% compared to December 2020. As the Coin Metrics charts show, fees on the Ethereum network were much higher than those in Bitcoin.
Polkadot, a blockchain that will compete with Ethereum for control of DeFi
