The ethereum network is at the center of the modern world.
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The transaction fees on the ethereum network are very high.
It's a problem that's making people angry and sending them to cheaper alternatives.
Some think it could be a serious threat to the network that bills itself as the future of finance.
The total market value of ether is more than $500 billion, making it the second-biggest cripto coin.
The network is at the center of the modern coin world. It's the foundation on which non-fungible token are built. Both NFTs and DeFi are huge industries.
Surge pricing is what is driving the price of ether.
People pay a base fee to have their transactions verified by other users.
As interest in NFTs has increased, so has the fees.
In a city that's just seen a huge influx of people, imagine a ride-sharing app that is struggling to add new drivers. People have to pay a huge surge price to get drivers to pick them up.
In November, the average transaction fee on the network was as high as $63. That was the second-highest level ever, behind May's record high of $70, according to analysts at the exchange.
The 3 trends that a currency strategist at U.S. bank believes will shape the market in the next 12 months are discussed.
Many people are angry at the fact that people are paying more than $100 just to deposit on Defi platforms.
One user said gas fees are insane. The average consumer won't use the ethereum network if it can't fix its gas fees.
Some are looking for something.
Some fans are not upset. The networks are positioning themselves to make money.
The transaction fees are a fraction of a penny. The network is handling many thousands of transactions per second, compared with double-digit figures for ethereum.
Over the past 180 days, the native token sol has risen more than 400%. Over the same period, the two have gained 80% and 500%, respectively.
"I think that some of those things have caused people to ask themselves, 'What else do I want to own at this point?'" Pete Humiston is the head of research at Kraken.
The developers are working on it.
Why can't the network be expanded?
Ben said it's a philosophy point.
He told Insider that increasing the capacity of the network would require users to deal with more data and upgrade their hardware.
Those with more modest resources will be excluded from participating if we crank up transaction throughput. It would no longer be very open.
Expanding a second ethereum layer is one of the solutions being worked out by developers. Many activities would be able to happen away from the core network.
Jack O'Holleran, CEO at Skale Labs, said it's too soon to say high gas fees are a crisis for ethereum. He said that they're a symptom of the network's success.
He told Insider that there's a lot of momentum from a developer perspective. The best teams and projects are using ethereum. The system connects into everything.
Business Insider has an original article.
