The popularity of tokens inspired by dogs, the “pets” of the crypto industry, has caused gas costs on the Ethereum blockchain to skyrocket, pushing transaction fees above $70.
The costs of carrying out transactions in the blockchain de Ethereum (ETH) Once again, small investors are left out of the game, who once again live the nightmare of not being able to interact with decentralized applications (dApps) and smart contracts (smart contracts) that are developed and executed on this blockchain, due to the high costs involved in carrying out even the simplest transactions.
The main reason behind the arrival of the new and high transaction costs on Ethereum is the fever for dog-inspired tokens. The “pets” of the crypto industry, as the dogs are known, are the most popular tokens in the world. cryptocurrencies, y token usage , the Dogecoin (DOGE), Shiba Inu (SHIB), Dogelon (ELON) y Akita Inu (AKITA), pushed Ethereum transaction fees to new heights.
Source: bitinfocharts
As seen in the chart, Ethereum gas fees are at levels never seen before, not even during the cryptocurrency boom in 2017.
Crypto memes, which showed growth of up to 1.800% in 7 days, attracted an impressive number of investors, who wanted to participate in these markets, motivated and blinded by their impressive growth in a short time. In fact, one of the exchanges One of the world's largest exchanges suffered complications with its deposit addresses due to the huge demand from investors for the SHIB token, within a few hours.
Likewise, the rally of ether, with a growth of more than 100% in the last 30 days, invited more investors to participate in its bull market. As expected, commission rates skyrocketed, putting ETH users at a new crossroads.
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$89 million in commission fees in 1 day
CoinMarketCap published a report recent report stating that despite the high commission costs on Ethereum currently, several investors and users are willing to pay extraordinary sums, up to 3 figures, to see their operations confirmed.
Source: CoinMarketCap
In the past 24 hours, investors have spent over $1,37 million in commission fees to miners on the SHIB-ETH pair alone. The total sum of all ETH pairs against dog-inspired tokens amounts to over $3,74 million, while the fees paid on the exchanges with stablecoins and tokens of DeFi, such as DAI, USDC, and YFI, exceed $1,3 million.
CoinMarketCap also highlighted that as “ridiculous as they may seem,” the dog token mania has become the focus of the crypto industry, leading investors to move “transaction volumes of hundreds of millions of dollars as their prices defy gravity.” On May 10, $89 million was spent on commission fees to Ethereum, the platform reported, driven by the high existing demand for decentralized applications combined with the fever for dog tokens and cryptocurrencies.
However, at the time of writing, DOGE, SHIB, ELON, and AKITA are all seeing corrections of over 20%. Even SHIB, which was once ranked 17th among the top cryptocurrencies by market cap, is currently at 24th and may continue to fall.
EIP-1559, the soon-to-be-fixed solution to high Ethereum fees
High fees on the Ethereum blockchain have become almost “common” on the network. Ethereum has been infamous for its out-of-control gas costs for months, charging users fees of up to $100 for relatively simple transactions.
However, a specific solution to this problem, which is becoming more and more acute, is about to arrive. The proposal for improvement EIP-1559 promises to significantly reduce gas costs on this blockchain by eliminating the fee auction system currently used by Ethereum. Although the solution is not to the liking of the network's miners, who will see their earnings reduced, LondonThe next hard fork scheduled for July, will activate this improvement proposal, and will give new breathing space to small investors so that they can operate again within this network.
Vitalik Buterin, co-founder and developer of Ethereum, previously stated that the activation of London and EIP-1559 will provide enough time to implement the solution Optimistic Rollup, which will increase the network's scalability by 100 times. In turn, this solution will be enough to ensure low fees on Ethereum until the arrival of Ethereum 2.0, which will migrate the network to a new consensus protocol to make the blockchain much more robust, secure, efficient, scalable and accessible. The developers aim to complete the activation of ETH 2.0, also called > In 2022.
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