Ethereum (ETH) Network Congested Again, And Market Prices Revive
The Ethereum (ETH) network is entering another moment of congestion, coinciding with more active trading. This time, the congestion is affecting many exchanges, with Binance increasing gas fees for withdrawals, while others choose to stop the withdrawals for now.
The Ethereum network has boasted of carrying three times the capacity of Bitcoin transactions. But this time, there are a lot of pending transactions shrank the real capacity. Events like these point out that despite the hypothetical possibility of building distributed apps on Ethereum, in real life, network usage quickly gets out of hand.
Hi there! Yes, there is significant congestion on the Ethereum network. You can expect delays for ETH withdrawals and deposits today.
— Gemini Support (@GeminiSupport) July 2, 2018
Costs for ETH transactions have increased to $0.66. The apparent reason seems to be a gas-guzzling smart contract for the distribution of 3D Blockchain Token (3DB). Other smart contracts belonging to CryptoKitties or decentralized exchanges are currently using less gas than before. Some decentralized games and collectible markets are having trouble offering their services. Price volatility, as well as gas prices, seriously affect the functioning of dApps.
#Binance has temporarily increased Gas price on withdrawals to 180 Gwei until the congestion on the $ETH network reduces.
Withdrawal fees will remain the same during this period. pic.twitter.com/LP4rwmIhxB
— Binance (@binance) July 2, 2018
The ETH market prices are still on the mend, below the $500 mark, growing by about 5.50% net this week, to $476.14. ETH remains one of the robustly traded coins, with volumes of $1.7 billion, mostly due to pairings with ERC-20 tokens. Additionally, ETH is also getting a boost of гTether (USDT) funds returning to claim trading gains after the price bottomed out near $401.
ETH may also be fighting toward the 0.1 BTC level, as Bitcoin prices remain more stagnant and returns may be sought in altcoins. ETH trading is one of the most distributed, comparable to Bitcoin, with various price pressures from numerous exchanges. However, Binance and OKEx are leaders.