Ethereum News Today – Headlines for November 24

UK-based Crypto Trading Platform is Launches Ethereum Futures Contracts
  • The Ethereum network is highly congested 
  • Collectibles and Decentralized Finance Are Responsible for the Congestion on Ethereum Network

Ethereum News Today – The congestion issue on the network is increasingly becoming a concern. The congestion on the network is observed on several days, and this could result in stratospherically high transaction charges. On some days, the transaction fees could surge to as high as $30. Many have attributed the massive spike in transaction fees to the increased competition for the ether blocks.

When different irregular blocks are used, the transaction charges can surge enormously for sending an Ether. At the time of writing, the transaction costs hover around 10 cents. However, the spike can happen at any time. What this means is that there is still an inherent sense of rivalry for resources in the ETH network that is evident from the high traffic period. 

Ethereum (ETH) Price Today – ETH / USD 

#NamePrice24H %
2
ethereum
Ethereum(ETH)
$159.03
-3.82%
 

Collectibles and Decentralized Finance Are Responsible for the Congestion on Ethereum Network

Spike in transaction charges can be attributed to a series of other reasons and also leading to a difficulty or halt in receiving and sending tokens. Normal users often take the blunt in times like these. According to some experts, a possible reason for this could be mining slowdown due to increasing difficulty resulting from the ice age feature of the mining. This means that age is not coming anytime soon, and the production and subsequent block delays of Ethereum will be a regular feature. 

Collectibles such as ERC271 tokens are also another reason. They have also caused congestion on the network in the past. Another possible reason behind the increase in transaction charges is the sudden increase in the smart contracts firing associated with the DeFi. When the price of Ethereum plunge abruptly, liquidation rules were set in automatically together with several other price protection mechanisms related to digital currency lending. Hence, these smart contracts were ready to pay high fees just to complete their activity. 

Ethereum Experienced Similar Congestion in 2017 and 2018

The issue of congestion on the Ethereum Network is nothing new. The maximum daily activity on the ETH network has dropped from its May 2019 height. The daily activity on the ETH network was at 94 percent in May this year. It has plunged to the current usage, which is about 84 percent. When the ICO craze was at its peak in 2017 and 2018, the ETH network experienced similar congestions. Then, there were delays in regular transactions since the network was clogged with Initial Coin Offerings. Hence, high transaction fees were normal. The FOMO factor is no longer applicable, and the network has grown to tackle the high fee situations accordingly. 

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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