#BLOCKCHAIN WALLET FEES UPGRADE#
However, it’s fully unclear when this upgrade will be released. This might change with the upgrade to Ethereum 2.0 which aims to manage several thousand transactions per second. Staking and lending are some of the buzzwords.Īs long as Ethereum has such limitations, spikes like the past three will occur again. Decentralized Finance promises to enable people to take their finance into their hands without any middleman. The third, and current spike in late 2020, is rooted in the rise of DeFi. As the hype around Cryptokitties declined, the fees decreased as well. Well, it’s kind of obvious that if several thousand players try to trade cards on an infrastructure that it is only able to manage about 12 transactions per second – globally. It allows players to create, trade, and collect cards with different kitties and every one with its own design and attributes. The second spike was shortly after in summer 2018 with the launch of Cryptokitties.
Hundreds of ICO were done in summer 2017 – per week. Ideally, this sparks the project behind the tokens to be successful. Initial Coin Offerings was (and still is) the activity to issue newly created tokens on Ethereum and to sell them to the community. The first one occurred in late 2017 with the success of ICO. To visual that, let’s take a view of the average fee per transaction over the last five years: source: These 12 transactions are distributed between all entities globally.
No more than about 12 transactions per second. Ethereum is still very limited to transactions per second. The more users and projects are relying on Ethereum, the scarcer the resources. However, the increase in popularity comes with its costs. Ethereum is the major blockchain when it comes to tokens, tokenization, and also DeFi projects.