Ethereum Rising Gas Fees are Still Concerning But Presents Opportunity For Decentralized Exchanges
June 30 2022 - 4:43AM
NEWSBTC
Paying gas fees is a crucial component of exchanging crypto and
mining digital assets yet remains a significant cost barrier for
transactions. A prime example is the major cryptocurrency Ethereum,
whose network incurs inherently high gas fees due to its high
volume of transactions and token evaluation. The term gas is used
to define the amount of Ether (ETH) needed to perform a specific
transaction allowing users to interact with the network. These fees
are used to compensate miners for the energy required to verify a
transaction. The gas price is highly volatile and dependent on a
multitude of factors. The primary factor that represents gas fee
price fluctuation is transaction congestion. As stated by Coin
Market Cap, “There is so much movement on the Ethereum chain that
the blocks are full, and transaction fees shoot up with each rise
in demand.” According to specialists, the transaction volume can
raise the gas fee from $5 to 50$ in seconds. Also, another critical
driven force is the token market price. Ethereum investments have
risen significantly since its inception in 2015. Within an
astonishing period, its value grew from around US$0.31 to around
US$4,800 (ATH) in November 2021. With the imminent release of ETH
2.0, which will replace the Proof Of Work model with the Proof Of
Stake mechanism, Ethereum may have a prosperous future, but
investors are still skeptical about further investing in Ethereum
after the recent crash. The rise in gas fees has made it one of the
most expensive blockchains to trade on, and Ethereum-based projects
are experiencing a decrease in transaction volume because of the
expenses. This situation represents a considerable opportunity for
decentralized exchanges, which are focusing their mission on
breaking down these cost barriers and on optimizing transaction
speed. Providing ecosystems that foster the growth and prosperity
of new incumbent projects. Xodex, with its features, is
decentralizing and eliminating cumbersome, slow, and restrictive
means, CEX, banks, and exchanging old rules. The platform is
committed to finding balance, innovation, and equity building. Its
upcoming main net blockchain launch aims to offer high transaction
throughput, reporting remarkable transactions per second (TPS)
speed of up to 100k, 50x faster than Ethereum, and zero fees. Its
Proof of Authority (POA) consensus will combine decentralization
with streamlined, scalable, and environment-friendly transaction
processing. According to its whitepaper, the Xodex wants to “solve
the problems that exist in the current blockchain-based projects”
through its anonymous ecosystem. One of its solutions is providing
decentralized and P2P services with no middlemen, providing more
security for users and direct access to funds. Within the world of
cryptocurrency and DeFi, gas fees and scalability have become a
significant cause of concern. Newcomers to the space like Xodex
provide revolutionary new alternatives to these pressing issues.
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