Undoubtedly, Ethereum is one of the most used blockchains in the world of crypto. To use the Ethereum blockchain, its tokens have to pay gas fees in Ethereum, that’s okay. This gas fee applies to every transaction on Ethereum network, which is unpractically high that makes it impossible, especially for smaller users.
We use blockchain not only for ether transactions but also when creating smart contracts, while deploying it, testing the coding, in short Ether is used in every related activity. The price of ether is increasing and as the use of this blockchain increases, it brings two problems with every activity.
The first problem is the slowing down of the Ethereum network and the increase in the cost of the gas fees. The fact that sending Ethereum from one wallet to another is not that expensive, but the use of blockchain for other purposes is becoming very expensive.
Would you believe that deploying a smart contract costs up to about one Ethereum of gas fees? Some contracts require three to four contracts to be added simultaneously, which is why it takes two to three Ethereums to make a smart contract at around $2100.
Another problem and the most common is in staking. The investors who have used the Ethereum blockchain for staking in a project, find it hard at maturity. They have to pay an exorbitant fee that costs at least $70. In most cases, the small investors that invested $50 or $100 find it impossible to withdraw their money.
The problem doesn’t end here, but if the price of Ethereum continues to increase, then the gas fee will increase as well if the concerned parties do not wake up right now. No one would want to pay such crazy fees for Ethereum transactions but will diversify into other reasonably priced crypto sectors.
NFT makers are also facing the same problem. The market for NFT, currently the hottest in the crypto space, is facing the same problem as well. Most of the platforms of NFT are also using Ethereum network. Buying an NFT here is getting expensive, but Minting an NFT is also very expensive. Minting an NFT is costing more than about $50, and that is why many people are not even thinking to work in this field.
The increasing price of ether is fine for investors, but the possibility of new investors, especially the small investors, is decreasing as its gas fee is not practical. This is the reason that the Ether blockchain is now getting the attention of developers all right, but small investors are keeping a distance of ether in the market.
That’s perhaps the reason In the last year or so, the Business Chain has established itself with a firm grip in the crypto market. Every new project is shifting over to Business Chain for its practical approach and practical viability.
This is also the case with the swap platform where any token has to pay a very high fee for swapping it through Ether. They are working on Ethereum 2, but it is taking too long. Just look at the Ethereum price which has gone up many-fold since last March and so has its gas fee, but the network is slowing down.
The Ethereum team will have to do something about this soon, otherwise, the Ethereum network will pay a heavy price. Investors have other reasonable options open.
