What is the future of Ethereum Based Tokens

What is the future of Ethereum Based Tokens


Late last year when the whole crypto market was surging there was another coin type which started making waves in the markets. Some were there all this while but people thought maybe they were just shit coins but all of a sudden they were awaken and even up to these day investors are still transaction, buying an holing them.

These tokens are called ERC-20 an they are based and run on Ethereum blockchain, these include Uniswap, CRO, Farm and so many others. These tokens are stored in Ethereum based wallets such as Trust wallet, Atomic wallet, Metamask etc.

You must have some Ethereum in your wallet for you to be able to transact with these Tokens, but with that there seem to be a problem arising and it can likely hinder the demand for ERC-20 tokens.

What is the main Obstacle likely to be faced by ERC-20 tokens

Ethereum an these ERC-20  tokens has been growing tremendously but so as the gas fees which has now become a huge stumbling block. You can swap these tokens with another token but the process of swapping is also heavily affected with the exorbitant prices. There are higher chances that people will abandon ERC-20  because of the huge losses made in the form of transaction fees which no1 can run away.

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How are the fees affecting tokens affecting the market?

These are always there if you transact with Ethereum and you can not run away from them unless you transact using binance chain or some other coins. Since people are always complain about the gas fees, there are higher chances that  they my start to dislike ERC-20 an this will lead in less demand with a huge supply in the market and then once the token is flooded then the price will drop.

So with this problem facing ERC-20 people are likely to not involve their selves with these ERC-20 so that they wont fall victim of these and i wouldn't be shocked to see the ERC-20 tokens fall an lose their value.

Conclusion

ERC-20 are time bombs getting ready to explode and we should expect a massive selloff because they are not cost effective as they are expensive. You can be charger more transaction fees value which is bigger than the actual transaction you are conducting.

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