Transaction fees on the Ethereum network have increased fivefold over the past few months. Some commentators crypto money that I Etherea for bearish They think it will be a signal.
Ethereum developers have been trying to upgrade the network to Ethereum 2.0 for a while and get rid of the Proof-of-Work (PoW) algorithm. But Ethereum users will have to pay the miners a transaction fee until this process is completed .
Increase in Transaction Fees
These fees paid to Ethereum miners started to increase. According to the information provided by Glassnode, Ethereum users now pay much more transaction fees than a few months ago.
Examining the average daily gas cost in the ETH network , Glassnode team announced that this price has increased 5 times since April and exceeded the 50 Gwei dam.
#Ethereum gas prices continue to rise.
The daily median gas price has increased by more than 5x since April, surpassing 50 Gwei yesterday for the first time in almost 2 years.
— glassnode (@glassnode) July 17, 2020
Some cryptocurrency commentators think that this development may have negative consequences for Ethereum . Because, according to these commentators, the high transaction fees on the Ethereum network will affect ETH users over time and less and less transactions will be made in the network . Sharing his opinions on the subject, Qiao Wang says that “paying a $ 10 transaction fee to make a transaction and waiting 15 seconds on top of it” leads to a bad user experience.
I’ve changed my mind after using a dozen of Defi platforms. So long as ETH 2.0 is not fully rolled out, there’s an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX. https://t.co/vXAAFET3YK
— Qiao Wang (@QWQiao) June 28, 2020
In addition, some analysts on social media also think that ETH is not in a good position for now. Of course, Ethereum can start to appreciate again with a sudden movement in the market . However, as can be seen in the chart that was recently shared on Twitter, some analysts say that ETH will decline, at least by looking at the available data .
— Calmly | full-time trader (@im_calmly) July 18, 2020