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Ethereum Transaction Fee Shots Up Tenfold in 2020 Because of Network Congestion
Summary: The average transaction fee on Ethereum network has risen from 8 cents in January to approximately 91 cents due to network congestion, as Coin Metrics’ data shows. The network’s congestion problem grows in line with its increasing popularity. Dominating many crypto market sectors including fiat-backed stablecoin and decentralized finance (DeFi) projects, Ethereum has been experiencing ...
The average transaction fee on Ethereum network has risen from 8 cents in January to approximately 91 cents due to network congestion, as Coin Metrics’ data shows.
The network’s congestion problem grows in line with its increasing popularity. Dominating many crypto market sectors including fiat-backed stablecoin and decentralized finance (DeFi) projects, Ethereum has been experiencing significant scaling issues in recent years.
Competitors view the spike in transaction fees as an opportunity to attract project developers, while users worry it may take longer for the network to scale as promised.
Vitalik Buterin, the founder of Ethereum, stated that rising fee will damage the network’s security, but noted that the Ethereum Improvement Proposal 1559 will hopefully resolve the conundrum.
By Lily Yang
Tags: Ethereum
Link: Ethereum Transaction Fee Shots Up Tenfold in 2020 Because of Network Congestion [Copy]
