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Author Topic: Will ETH prices rise when its network usage at a historical high?  (Read 400 times)

Jason0522

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According to a recent report from Delphi Digital, the amount of Gas used on the Ethereum blockchain is at an all-time high, and the number will continue to grow. Gas is used as a way to charge for the Ethereum blockchain, and the total amount of gas used online has been rising since the beginning of 2020.



Gas usage and possible maximum fuel   -  sources: Delphi Digital

The total amount of ETH gas used is different from the transaction cost indicator in the BTC blockchain. On the Ethereum network, transaction and intelligent contract fees are determined by the amount and price of gas required, which allows fees to change dynamically and separated from Ethereum's price to a certain extent.

The amount of gas used in a given transaction depends on the computational complexity of the transaction. Gas prices, on the other hand, are chosen by the person executing the transaction and priced in Ethereum. The price is ultimately set by the miners, who accept or reject the deal based on the gas price.

USDT and DEX leads the market

While gas usage reached an all-time high, the number of transactions on the Ethereum blockchain is still far below  1,349,890, the transactions reached on January 4, 2018.

This means that most of the increase in total gas usage comes from the use of smart contracts, which are more complex and therefore require more gas.

According to ETH Gas Station, the majority of gas usage comes from USDT, of which used about $1.61 million of Ethereum Gas. This is more likely followed by DeFi and some scams and Ponzi schemes. USDT also leads in average gas prices used, at 35.5 Gwei.

After USDT, DEX appears to be in the lead in popularity. According to DappRadar, IDEX is the most used Dapp in terms of the number of transactions alone, while IDEX and Kyber are among the top three on the Ethereum network.

A recent survey also shows that DeFi's highest awareness and usage comes from DEX.


Higher transaction fees and gas restrictions

The increase in the use of the Ethereum network led to an increase in average transaction costs as miners preferred to deal with higher gas prices.

Total gas usage is limited by miners, which limit the size of the Ethereum blockchain by determining how many transactions are in a block.

Ethereum is likely to face network congestion soon due to several factors, including the current increase in the use of gas on the network and related block gas restrictions. If gas usage rises to the upper limit, users will have to compete with higher gas prices to execute trades and smart contracts.

Also, a sudden collapse in Ethereum prices can lead to higher fees and network congestion. According to a report by The Block, on March 12th, the average fee costs increased from $0.16 to $1.04.

When the usage is close to the limit set by miners, we may need to add the block gas limit. The most recent increase was in September 2019, when the block gas limit increased by 25%, from about 8 million to about 10 million.

However, the change will further increase the size of Ethereum's blockchain, which is already nearly 140 GB. Therefore, seeking a more efficient method of investment has become a new way out for many people.

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Cara091025

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Re: Will ETH prices rise when its network usage at a historical high?
« Reply #1 on: June 12, 2020, 01:00:33 PM »
I hope when the Ethereum blockchain usage is at its highest peak it will not cause an increase in gas prices that we need to send ethe-based coins or Ethereum tokens.  But I hope that increasing use of the Ethereum blockchain will make Ethereum prices go up high.

G.Belaci

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Re: Will ETH prices rise when its network usage at a historical high?
« Reply #2 on: June 12, 2020, 01:35:28 PM »
Investing in top coins are the safest way in my opium. Ethereum has proven to be a solid coin and therefor a good choice for long term investing.

OluwaTosin10

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Re: Will ETH prices rise when its network usage at a historical high?
« Reply #3 on: June 12, 2020, 10:22:09 PM »
For some reasons, i do feel like ethereum network fees, token overall usage and adoption cannot lead it to an historical height.
The etherum token has a huge token total supply, and it is hard to make it scarce in such circumstances, remember, the higher the demand, the higher the price.

Maybe when there is a full blown adoption, we can experience such.

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Blueblade

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Re: Will ETH prices rise when its network usage at a historical high?
« Reply #4 on: June 15, 2020, 01:50:28 PM »
I think this is the proof of the ethereum bull market actually ethereum is powerful altcoin I hope this year ethereum will rise again so I'm just waiting for the ethereum 2.0 , ethereum 2.0 will be included lot of advantages for ethereum users thus ethereum price will go to peak.

bigcash2011

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Re: Will ETH prices rise when its network usage at a historical high?
« Reply #5 on: June 15, 2020, 09:04:39 PM »
To be honest i am super bullish about eth and its value will soon start a big upward trend. Both technically and fundamentally we can see huge positives for eth and i am very hopeful that bullish break is coming soon and then eth can become unstoppable most probably so accumulate as much as you can.

Jason0522

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Re: Will ETH prices rise when its network usage at a historical high?
« Reply #6 on: June 16, 2020, 10:52:39 AM »
The perspective of ETH is limitless

Jason0522

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Re: Will ETH prices rise when its network usage at a historical high?
« Reply #7 on: September 15, 2020, 04:02:21 AM »
The price of ETH will increase, as will the price of gas. This is the ultimate reality. But if everything goes to the gas price, then those who will do the transaction, what will they have. But I think its plan will change for the better. So I think there should be good thinking about gas price.
But I'm still not sure how eth 2.0 will work. So I'm optimistic that something good will happen.

 

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