Cryptocurrency, Featured

Ethereum Network Clogs Up Raising Transaction Fees

The Ethereum network is found to be highly congested due to a rise in the volume of unexpected activities for the second consecutive day in a row. In fact, the transaction fee in the network has gone up by forty-seven times, since August 7th.

Some users have identified a solo smart contract that has consumed over 36.4 percent of the gas. It was more than enough to trigger congestion in the Ethereum network and also raised the transaction fees. Regular transaction fees have gone above 1 USD, which is being regarded as high even by the cryptocurrency standards.

The market prices of Ethereum have been hit badly. In fact, its prices fell below the 400 USD level. The currency has made only marginal gains in comparison to August 2017 because its price declined to 370.85 USD.

Congestions in the network are gradually reducing the reputation of Ethereum in the crypto space. Although there have been numerous ETH ICOs, things are not looking quite bright at this moment for the virtual currency.

Hypotheses For Ethereum Network Congestion

There has been a hypothesis going around that apparently meaningless Ethereum transactions are being included by someone who is intentionally paying for causing the network congestion. Speculations are also rife that there has been a revival of a rival scam.

A second hypothesis in the crypto space is that the Ethereum has been used in a lottery-like game for faking participation of several users. Ideally, ETH-based games have a few users only. Hence, some people suggested that fake-looking participation could be created by someone.

However, the advocates of Ethereum have some good news to rejoice about. The total activity in the ETH network has dropped from more than 700,000 transactions in one day to approximately 560,000 transactions in the next day, Cryptovest reported. There is a strong likelihood of regular users not doing transfers when they find the congestion in the network is at its peak.

 

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
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Pala Sen is an avid follower of fintech, travel and health updates, current affairs and entertainment news from all across the world and writing is a passion for her. She had been previously associated with the corporate world for several years and holds a degree in MBA and a postgraduate software diploma called GNIIT from NIIT.

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