- Ethereum has settled over $6.2 trillion worth of transactions over the past 12 months, despite a spike in gas fees.
- Analysts argue that Vitalik Buterin once stated that "the internet of money should not cost 5 cents a transaction."
- Ethereum-killers like Avalanche, Solana and Cardano are likely to takeover the altcoin in the months before "The Merge."
Ethereum is expected to transition to proof-of-stake (POS) in late 2021 or early 2022. Until then, traders fight the uphill battle of rising transaction fees.
Avalanche, Solana and Cardano became popular as Ethereum-killers, but the altcoin is killing itself
Ethereum is months away from its transition to PoS, in “The Merge.” Until then, traders on the Ethereum network suffer from high fees on the network. Proponents on Twitter condone the complaints on transaction fees, however analysts consider this more than a rant.
A cryptocurrency trader @HukAleksandra tweeted earlier today,
Trying to do a transaction on #ETH blockchain atm, the cost is over a thousand dollars.
— Aleksandra Huk (@HukAleksandra) October 6, 2021
Vitalik once said “the internet of money should not cost 5 cents a transaction”.
Dunno what’s with “Ethereum killers” narration, sorry but Ethereum is killing itself.
Aleksandra is referring to Ethereum co-founder Vitalik Buterin’s statement,
The Internet of Money should not cost 5 cents per transaction.
Buterin has proposed the use of rollups for low transaction costs in the past. Though rollups may solve the altcoin’s scalability problem, they increase the reliance on others.
Decentralization is at the core of the Ethereum network. Rollups literally “roll up” transactions into a single block and reduce the congestion in the ETH network by centralizing it to a certain extent.
The price that traders pay for faster and cheaper transactions is a “certain degree of centralization” in the process.
The debate on fees continues since the Ethereum network has processed over $6.2 trillion worth of transactions over the past year.
Ethereum transactions settled over the past twelve months.
Alongside these developments on the Ethereum network, alternatives like Avalanche, Solana and Cardano have noted a spike in demand and market capitalization. Popular as Ethereum-killers, these cryptocurrencies have emerged as cheaper and faster alternatives to the Ethereum networks and thousands of decentralized applications have chosen AVAX, SOL or ADA ecosystem to develop their projects.
Until “The Merge,” Ethereum holders and traders are expected to suffer from high transaction fees on the network.
FXStreet analysts have evaluated ETH price trend and predicted that the altcoin has positioned itself for a bullish breakout.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin likely to remain in red through the next quarter if history is any indication

Bitcoin (BTC) price produced a monthly close at $27,210, noting a -6.92% return for May. The last-minute slide in BTC put an end to the four-month bullish streak that kickstarted the 2023 rally.
Ethereum vs. SEC: Implications of Wahis’ insider trading settlement on ETH

Ethereum (ETH) is the subject of a new controversy, with the second-largest crypto finding itself in the rut after the United States Securities and Exchange Commission (SEC) settled its insider trading case against the Wahi brothers.
Justin Sun’s TRON hits all-time high of 10.9M daily transactions, braving crypto winter

Justin Sun, the founder of TRON – one of the largest decentralized blockchain DAO ecosystems in crypto – shared a new milestone for the token on Thursday. TRON processed 10.9 million in daily transactions, hitting a record high.
Ethereum fees decline by 70% from 2023 highs as top DeFi protocols lose users

Ethereum is currently facing trouble in the spot market due to the broader market bearishness as well as investors' skepticism. But while the spot market only recently took a turn for the worse, the DeFi space has been only negative for a long time.
Bitcoin: BTC delays inevitable crash to $25,000

Bitcoin price is delaying a crash that has been brewing for roughly two weeks. A failure to push higher could result in a steep correction next week. The troubling macroeconomic conditions could be key in catalyzing and trigger a nosedive for BTC holders.