Ethereum 2.0 urgently! That’s the message from influencer Lark Davis. For the latter, competition siphons off Ethereum users, undermined by its exorbitant trading fees. Developers are called upon to step up.
Would there be danger in the Ethereum home? Indicators could give the opposite feeling. At the beginning of February, the public blockchain thus reached the milestone of one billion transactions. As for l’Ether, he was flirting with the 2000 dollars.
However, a few months earlier already, DeFi players sounded the alarm. In question, the congestion of the network, which made explode the costs of trading. At the start of 2020, these fees were once again reaching records, to the delight of minors.
Competition proliferates over Ethereum fees
But for influencer Lark Davis, aka “The Crypto Lark”, Ethereum is in danger. And the threat comes from rival blockchains, which could thus continue to siphon off Ethereum users.
The excessive gas costs are indeed an argument of conquest for other blockchains, such as Solana or Binance Smart Chain. At least that’s the argument defended by Lark Davis in a YouTube video.
According to him, Ethereum is too expensive. In the long term, it could no longer be reserved for “ wealthy investors “. As for other users, they would have many reasons to be tempted by cheaper alternatives.
Davis observes the growing popularity of Binance Smart Chain, whose DApps are seeing their volumes grow rapidly. And the reason is simple, gas costs “ totally crazy » sur Ethereum.
Ethereum 2.0 quickly to contain transaction costs
The crypto influencer therefore believes that developers must now work hard to accelerate the launch of Ethereum 2.0.
“(…) Most regular users cannot use the majority of applications on Ethereum. […] A transaction on Uniswap costs 50 dollars on average these days and that’s just crazy, ”he says.
But the finalization of the next generation of Ethereum is not for now. The so-called zero phase started in December. It allows users to block their Ether on ETH 2.0 by staking.
Migration of transactions on the blockchain must wait. Thus, the scaling functions, or scaling up, of ETH 2.0 will not be activated at best until the end of the year. However, it is they who must avoid congestion and inflation of costs.
In the meantime, these costs remain very substantial. According to Bitinfocharts.com, the fees on the blockchain average $ 30. On February 22, a day of great turbulence in the crypto market, they even amounted to $ 50.