{"id":561496,"date":"2020-05-19T19:50:20","date_gmt":"2020-05-19T17:50:20","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=561496"},"modified":"2020-05-27T01:50:55","modified_gmt":"2020-05-26T23:50:55","slug":"ethereum-based-stablecoins-possibly-to-blame-for-high-eth-gas-fees","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/ethereum-based-stablecoins-possibly-to-blame-for-high-eth-gas-fees\/","title":{"rendered":"Ethereum Based Stablecoins Possibly to Blame for High ETH Gas Fees"},"content":{"rendered":"<p><strong>In brief:<\/strong><\/p>\n<ul>\n<li><strong>Ethereum transaction fees are known to spike during periods of high trading activity such as the period before, during and after Bitcoin&#8217;s halving.<\/strong><\/li>\n<li><strong>The team at Weiss ratings have now added stablecoins to the list of causes of substantial increment of gas fees on the Ethereum network.<\/strong><\/li>\n<\/ul>\n<p>A few days back, we revisited the topic of crypto <a href=\"https:\/\/en.ethereumworldnews.com\/traders-still-prefer-xrp-when-transferring-funds-between-exchanges\/\" target=\"_blank\" rel=\"noopener noreferrer\">traders using XRP to transfer funds<\/a> between exchanges during periods of high trade volume such as before, during, and after Bitcoin&#8217;s halving event. The reason traders prefer the remittance coin is due to the XRP ledger&#8217;s low transaction fees and quick transactions when compared to those of Ethereum (ETH) and Bitcoin (BTC) when there is an increase in activity on the respective blockchains.<\/p>\n<h2>Stablecoins the Root Cause of High Fees on the Ethereum Network<\/h2>\n<p>The team at Weiss ratings has since expanded on the topic of high Ethereum gas fees by concluding that ETH based stablecoins are to blame for this phenomenon. <a href=\"https:\/\/twitter.com\/WeissCrypto\/status\/1262769670664400896\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">In a two-part Twitter thread<\/a>, the team at Weiss Ratings elaborated on how <a href=\"https:\/\/en.ethereumworldnews.com\/launch-of-ethereums-eth2-0-upgrade-might-not-happen-in-july\/\">ETH 2.0<\/a> would provide a solution to this problem. Failure to which the Ethereum network is doomed to a fate of constant congestion.<\/p>\n<blockquote><p>Transaction fees on #Ethereum have become considerably more expensive, and #ETH-based #stablecoins could be the ones to blame. This is good news for miners, but bad news for users.<\/p>\n<p>ETH grows more popular by the day, but it really needs the 2.0 upgrade &#8211; otherwise, it will continue running at full capacity, day in and day out. It&#8217;s a good problem to have, but it&#8217;s a problem still.<\/p><\/blockquote>\n<h2>Tether (USDT) Partly To Blame<\/h2>\n<p>Further checking the data of Ethereum transaction fees on <a href=\"https:\/\/ethgasstation.info\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">ETH gas station<\/a>, we observe that ERC-20 based Tether transactions lead the rest in transaction fees. Additionally, at the time of writing this, users of the Ethereum network should expect to pay as high as $0.33 per transaction. As the team at Weiss ratings put it, this is good for miners, but bad news for users.<\/p>\n<figure id=\"attachment_561497\" aria-describedby=\"caption-attachment-561497\" style=\"width: 866px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/05\/ETH-GAS-station.jpg\"><img class=\"wp-image-561497 size-full\" src=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/05\/ETH-GAS-station.jpg\" alt=\"\" width=\"866\" height=\"481\" srcset=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/05\/ETH-GAS-station.jpg 866w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/05\/ETH-GAS-station-300x167.jpg 300w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/05\/ETH-GAS-station-770x428.jpg 770w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/05\/ETH-GAS-station-240x133.jpg 240w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/05\/ETH-GAS-station-717x398.jpg 717w\" sizes=\"(max-width: 866px) 100vw, 866px\" title=\"\"><\/a><figcaption id=\"caption-attachment-561497\" class=\"wp-caption-text\">ETH Gas fee leaderboard courtesy of ETH Gas Station.<\/figcaption><\/figure>\n<h2>Ethereum Classic is Looking for Stablecoin Projects<\/h2>\n<p>Perhaps it might be a good idea for some of the stablecoin projects to take up Ethereum Classic Lab&#8217;s offer. The latter team had in early May expressed their intention <a href=\"https:\/\/en.ethereumworldnews.com\/ethereum-classic-etc-is-looking-for-stablecoin-projects-to-support\/\" target=\"_blank\" rel=\"noopener noreferrer\">to partner and support stablecoin projects<\/a> in the future. Such a move would probably alleviate some of the load on the Ethereum network. The migration to the ETC network would further be frictionless once <a href=\"https:\/\/en.ethereumworldnews.com\/ethereum-classic-etc-to-undergo-a-hard-fork-in-june\/\" target=\"_blank\" rel=\"noopener noreferrer\">the Phoenix upgrade is implemented in June<\/a>. The latter Ethereum Classic hardfork will make the ETC and ETH networks fully compatible.<\/p>\n<p>(Feature image courtesy of Unsplash.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In brief: Ethereum transaction fees are known to spike during periods of high trading activity such as the period before, during and after Bitcoin&#8217;s halving. The team at Weiss ratings have now added stablecoins to the list of causes of substantial increment of gas fees on the Ethereum network. A few days back, we revisited the topic of crypto traders using XRP to transfer funds between exchanges during periods of high trade volume such as before, during, and after Bitcoin&#8217;s [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":561499,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[823],"tags":[1322,7936,4875,1811],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/561496"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=561496"}],"version-history":[{"count":0,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/561496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/561499"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=561496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=561496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=561496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}