- Ethereum
Gas charges It plummeted to its lowest level since August 2021. - According to analysts, the latest trigger for the fall is a decline in interest in NFTs.
DeFi .. - Continued pressure on inflation concerns, the conflict between Russia and Ukraine, and’
Ethereum Killer ‘Can also contribute to lower gas prices.
Transaction costs on the Ethereum Network, the world’s first smart contract blockchain platform, were the lowest in six months. Gas prices have already fallen as Ethereum prices (
At the same time, the driving forces behind non-fungible tokens (NFT) and decentralized finance (DeFi) behind Ethereum’s all-time high of $ 4,770 in November are declining as macroeconomic conditions mix with cryptocurrencies. I am.
While major global banks like JP Morgan and Morgan Stanley have the advantage of being a pioneer in the field of smart contracts, the surge in alternative platforms that offer the same services at lower cost and faster will give them an edge. It is pointed out that it has been scraped off.
Low price, low transaction cost
Gas charges are calculated at Gwei (smaller face value of ETH) when the price of tokens goes down, so gas charges are calculated as well.
Since the beginning of this year, the entire cryptocurrency market has undergone a large amount of liquidation and its value is now below $ 2 trillion. So far this year, the price of ETH alone has plummeted by more than 30%.
Last year, hype over NFTs and DeFi caused a surge in the number of users on the network. As more people traded using ETH and bought NFTs, token prices naturally rose along with gas prices.
According to CryptoRank, in 2022, while DeFi and NFT are still in the spotlight, the hype around them isn’t as high as last year.
Solana, Cardano and other “Etherium Killers”
Ethereum, the world’s second-largest cryptocurrency by market capitalization, is like an app store. Developers can enter and build applications or “smart contracts” and have others in the network use them. This is the same as using the Android app only on Android phones, not iOS devices.
Ethereum also faces a more competitive market, with a huge addressable market for cryptocurrencies that go beyond mere valuable stores like Bitcoin.
Its scalability issues (gas prices skyrocket with every surge in users) and its slow speed leave room for others such as Binance, Solana, and Cardano to open up niches.
Related item:
LimeWire plans to make a comeback in May, so it will move from P2P to NFT
Ethereum is no longer the second most preferred proof of stake network for miners
..
