Ethereum’s network demand is increasing over the past few days but now it seems that it comes more than just transferring ETH tokens. Let’s find out more in the coming altcoin news below.
A large part of Ethereum’s network demand is due to the activity of smart contracts. The most active smart contract on the ethereum network since September 15th this year is one of the growing ETH Ponzi scheme. This contract took the lead over the past few days as the social media users noted. The scheme is gathering traction and more users are now sending in ETH for a short opportunity window in hope to get high returns. The Ponzi scheme contract burned more than 27 percent of all gas just a day ago. The second-largest smart contract ‘’Tether USD’’ issues and transfers USDT coins on the Ethereum network and reached a supply of 1.9 billion USDT.
The Tether contract usually burns up to 30 percent of all gas on the Ethereum network and takes up more computational power than the most active distributed apps. The usage rate of more than 30 percent is extremely rare and usually means that the network could be overloaded with huge transaction prices. Over the past month, the fees to send some ETH tokens or to use the Ethereum network kept increasing and reached an average of $0.27. The price is still low but the Tether smart contract means that some of the users will have to wait for their transactions to be included in the block. Ethereum’s network strength is also very weak. The Ethereum Virtual Machine is a distributed computer which works on the open market principle so that anyone can pay for the computation can use the network.
Ethereum is censorship-free which means that ETH-based entities can pay for the gas. So when a Ponzi scheme happens, the constant inflows of ETH mean the project has no issues and paying for the fast computation. The presence of the smart contracts also hampers the work of the smaller dapps and makes it hard for the developers to launch their projects. As per the latest cryptocurrency news, ETH is trading at $194 and is on track to reach the $200 level.
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