Ethereum News Today – Headlines for September 5

UK-based Crypto Trading Platform is Launches Ethereum Futures Contracts
  • Ethereum’s transaction fees won’t kill the ETH Blockchain – asset manager
  • Rising transaction rates on Ethereum has been a cause for concern for many
  • Solutions are still needed even the issue won’t negatively affect Ethereum

Ethereum News Today – In recent days, Ethereum’s network congestion has reached an untenable point. At one point in the past week, the average user of the blockchain was spending $50 in ETH to send a single transaction, effectively pricing out a majority of users. To include a personal anecdote, this writer has spent over $1,500 on gas fees in the past two weeks.

With such extreme cost to send transactions, there have been some critics that say Ethereum is failing and will be overtaken by blockchain competitors. Many Blockchain founders and analysts have been concerned about the situation on Ethereum. But one asset manager and the author don’t think this is a concern for Ethereum’s long-term future, though.

Ethereum’s Rising Transaction Rates Won’t Kill the Blockchain

The managing partner of Hartmann Capital, Felix Hartmann, remarked that “ETH’s gas fees won’t cause the end of the network. Hartman who is also an author said:

Saying Ethereum’s transaction fees will trigger its downfall is similar to saying the downfall of the biggest club in town is it has reached its capacity, and you go to the next joint that’s below the standard.”

A key aspect of his position is that in the rise in Ether’s transaction fees. Investors have come to see that the apps on the network are “products that people want. These products have been onboarded. This is a good determining factor for the long-term success of any Blockchain. Because even if a new network offers less in terms of transaction fees, if they don’t offer good apps, there will be no point in migrating to that platform. He adds:

If you can’t comprehend the importance of what is happening with DeFi, including the yield craze, you can pause, and reflect.”

Solutions Are Needed Now More Than Ever

Hartmann also talked about the vast influx of capital, users, and hacks that have been happening in Ethereum’s DeFi. He claims that these metrics will improve the viability of this market segment in the future. He said:

“Let the children enjoy themselves. They will learn their lesson regarding economics and risk-taking. However, when the dust settles, what will be left behind will be more capital and talent in the sector than ever.”

This is not to say that Ethereum isn’t in dire need of solutions to the current predicament. Solutions are on the way according to the founder of Ethereum Vitalik Buterin. Buterin has addressed the potential solutions via a tweet saying:

The effective solution to high transaction fees is scaling. Gitcoin, Tether, and other apps have started to do the right thing after they migrated to ZK rollups. I’m happy about the upcoming rollups that will practically generalize rollup scaling to EVM contracts.”

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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