Why is Ethereum fees so high? - cyptoranking.com

2024-04-29

Popular crypto exchanges(2023 Update) 2024-04-29
Image: cyptoranking.com

The AVAX price broke out from a descending resistance trendline on September 25. It accelerated its increase afterwards, reaching a high of $11.88 on October 7. When asked for a simplified explanation, Linus replied: Why is Ethereum fees so high?Additionally, CryptoBusy emphasized the vulnerability of fiat currencies by noting: This involves doing dealings with more tokens than you currently have in your holdings.

Exchange Rankings Crypto
Image: cyptoranking.com

Technical indicators indicate a potential decline for Quant cryptocurrency, nearing the lower trendline of the descending channel pattern. The relative strength index (RSI) validates this downtrend, with RSI at 35 and approaching oversold levels. Investors in Quant should monitor for any shifts in direction on the daily chart. Bit Digital Faces Production Decline Due to Maintenance Outage Ethereum Name ServiceLido hoped to draw Arbitrum grant funding with the allure of bringing its behemoth staked ether product to the layer-2. But so far, the Arbitrum governance community is almost evenly split. Things have not gone too well for the ETH / BTC valuation after the Merge as lower highs and lower lows have been consistently set on the 1-week chart. However, Cowen also highlighted that the deflationary aspect that came along with the Merge could cause ETH to behave differently than in previous cycles, making it even harder to predict what is next.

🚨 Nov 17 is the new deadline for a US Government shutdown. Why is it positive for #Bitcoin ?– Safe haven asset: Investors may turn to #BTC as a hedge against economic uncertainty and inflation during a shutdown.– Reduced Regulation: With government agencies temporarily… pic.twitter.com/at7pLAPfCm In order to enhance security, cold wallets will be used to control more than 70% of asset management, the report noted. It added that hot wallets will be used to implement multi-structure decentralized operations. Why is Ethereum going up?DappRadar is a versatile platform designed to facilitate user exploration of the expansive array of applications within the Web3 industry. This invaluable tool meticulously indexes more than 14,000 dApps and over 33,000 NFT collections across 54 blockchain networks. Users can seamlessly navigate through applications spanning diverse categories, including gaming, NFTs, and DeFi, while also gaining access to crucial metrics such as unique active wallets, transaction data, and more. In May, bound account tokens (TBAs), also known as NFTs, which function as crypto wallets, were introduced to the Ethereum market for the first time.

But if the Ethereum price can scale that resistance sell-wall, it could edge closer to $2,000. The rise of Ethereum staking since major network upgrades, the Merge and Shanghai, has come at the cost of higher centralization and lower staking yields, a new report by JPMorgan said.JPMorgan analysts, led by senior managing director Nikolaos Panigirtzoglou, issued a new investor note on Oct. 5, warning about the risks stemming from Ethereum’s growing centralization.Market share of top five liquid staking providers. Source: JPMorganThe top five liquid staking providers: Lido, Coinbase, Figment, Binance and Kraken, control over 50% of staking on the Ethereum network, JPMorgan analysts noted in the report, adding that Lido alone accounts for almost one-third.The analysts mentioned that the crypto community has seen the decentralized liquid staking platform Lido as a better alternative to centralized staking platforms associated with centralized exchanges like Coinbase or Binance. However, in practice, “even decentralized liquid staking platforms involve a high degree of centralization,” JPMorgan’s report said, adding that a single Lido node operator accounts for more than 7,000 validator sets or 230,000 Ether (ETH).These node operators get selected by Lido’s decentralized autonomous organization (DAO), which is controlled by a few wallet addresses, “making Lido’s platform rather centralized in its decision making,” the analysts wrote. The report mentioned a case when Lido’s DAO rejected a proposal to cap the staking share at 22% of Ethereum’s overall staking to avoid centralization.“Lido didn’t participate in the initiatives as its DAO rejected the proposal by an overwhelming majority of 99%,” JPMorgan analysts wrote, adding:“Needless to say that centralization by any entity or protocol creates risks to the Ethereum network as a concentrated number of liquidity providers or node operators could act as a single point of failure or become targets for attacks or collude to create an oligopoly [...]”Apart from higher centralization, post-Merge Ethereum is also associated with an overall staking yield decline, JPMorgan noted. The standard block rewards declined from 4.3% before the Shanghai upgrade to 3.5% currently, the analysts wrote. The total staking yield has declined from 7.3% before the Shanghai upgrade to around 5.5% currently, the report added.Related: Time to ‘pull the brakes’ on Ethereum and rotate back to Bitcoin: K33 reportJPMorgan analysts aren’t the only Ethereum observers who have noticed a significant increase in network centralization following the Merge upgrade. Executed on Sept. 15, 2022, the Merge has been seen as a major impediment to Ethereum’s decentralization and a major reason for dropping yields.you are the yield pic.twitter.com/ONJT6QmDch— Pledditor (@Pledditor) October 5, 2023 How To Buy Dogecoin (DOGE)-Forbes Advisor UKThe move enables users to create their own “RTokens” — decentralized stablecoins, flatcoins (pegged to the cost of living) or tokenized indices — using Reserve’s Asset Backed Currency Factory on the cheaper Layer 2 network. These assets are backed by overcollateralized baskets of Ethereum-compatible ERC-20 tokens. Bitcoin fee to reward ratio chart. Image source: BitInfoCharts.

Have an opinion on this story? Share it!