Ethereum fee misery continues – Why not use the layer 1 competition?

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The days when you could possibly make an Ethereum transaction for lower than $30 appear to have ended months in the past. At excessive utilization occasions, customers of the blockchain will pay nicely in extra of $100. With rivals equivalent to Solana, Avalanche and Fantom, offering massively faster transactions and at a miniscule proportion of the value, why would anybody truly select to use the Ethereum blockchain?

According to Messari, the common value for an ethereum transaction was round $47.35 as of 16 November. Partly in jest, Ryan Selkis, the CEO of Messari, was quoted as saying:

“It doesn’t matter if Ethereum is a safety anymore as a result of the solely individuals who can afford to use it are accredited anyway.”

Obviously a reference to the world of conventional finance, the place sure securities can solely be purchased into by rich people known as “accredited buyers”.

To be trustworthy, it seems that the solely motive that the common Joe investor is paying these charges is that the upside they’re getting from the cryptocurrencies they buy truly makes the charges price paying.

The Ethereum blockchain is damaged…. however it seems that the king has no garments on. Influencers and so known as monetary consultants are all saying that ethereum is the one to purchase. Just take a look at the quantity of eth staked for Eth 2.0.

Also, a fast go to to the web site WatchTheBurn tells us that greater than $4 billion in ETH has now been burned, and that the scales have tipped in order that extra ETH is burned, than is put into circulation, subsequently making it a deflationary asset.

However, at the finish of the day, the ethereum blockchain will must be used for massively transaction intensive use circumstances, equivalent to finance and gaming and many others. but it surely’s simply not as much as it, and once you see that scalability is just going to be addressed in 2023, who on earth will watch for it?

Zhu Su, CEO of Three Arrows Capital, acknowledged his dismay at the state of Ethereum by tweeting:

“Yes I’ve deserted Ethereum regardless of supporting it in the previous. Yes, Ethereum has deserted its customers regardless of supporting them in the previous. Ethereum tradition suffers massively from the Founder’s Dilemma. Everyone is already far too wealthy to recollect what they initially got down to do.”

Enter stage left Solana, Avalanche, Fantom and co. Anyone who has used the dexes on these ecosystems will know the pleasure of having the ability to make a transaction costing just a few cents, and one that’s finalised in just a few seconds.

These layer 1 blockchains are doing now what Ethereum solely hopes to do in a few years. The writing is on the wall, simply how lengthy will it take the market to see it?

Disclaimer: This article is offered for informational functions solely. It is not provided or supposed for use as authorized, tax, funding, monetary, or different recommendation.

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John Lesley/ author of the article

John Lesley is an experienced trader specializing in technical analysis and forecasting of the cryptocurrency market. He has over 10 years of experience with a wide range of markets and assets - currencies, indices and commodities.John is the author of popular topics on major forums with millions of views and works as both an analyst and a professional trader for both clients and himself.

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