The ethereum price, which gained 10 percent in the last 24 hours, reached $485. The highest level of 2020 was also seen for the first time since July 2018. GAS fees peaked as the price increased.
%176 since last year
According to data from CoinGecko, ethereum has gradually increased by 10% in the last 24 hours to hit $485. The daily earnings of the cryptocurrency are 10% while the weekly earnings are 16.3%.
ETH, which gave 22.4% return to its investors in the last 30 days, is 176% more valuable than 365 days ago.
DeFi explosion and ETH 2.0
According to experts, there are two main reasons behind this rise. The first of these is the DeFi explosion. The volume of the DeFi industry, which has been in high demand this year, has skyrocketed and exceeding $20 billion. Comparing DeFi to the ICO bubble of 2017, experts warn investors, but the DeFi bubble does not look like it will burst. Almost all DeFi protocols manage to raise millions of dollars shortly after launch. This is mostly caused by investors who think they missed the train and having “FOMO”.
The second reason is ETH 2.0. The second version, which is said to solve many problems in the ethereum network, although it is constantly delayed, is likely to be released this fall. In particular, ETH 2.0 will enable the consensus algorithm to transform from Proof of Work to Proof of Stake. This will lead to improvements in many areas, particularly high transaction fees and some security issues. This will cause more investors to buy Ethereum.
Binance may increase ethereum withdrawal fees
Changpeng Zhao, the CEO of the world’s most popular cryptocurrency exchange made a statement on Twitter after the price increase. While CZ put a “smiley” at the end of the tweet, ethereum said they had to readjust their shooting fees eventually.
The high ETH network gas fees is causing problems for most exchanges, running with $10-20 loss on each withdrawal.
Will have to adjust our withdrawal fees sooner or later. 😂
— CZ 🔶 Binance (@cz_binance) September 1, 2020
According to data from Etherscan, currently the average transaction fee on the network is $5. While this hurts many investors, some experts argue that the numbers of whales will increase, but individual investors will decrease, as trading on the ETH network becomes expensive.
Although high transaction fees are expected to be resolved with ETH 2.0, the release of the second version is not very close. Tether took out most of its volume, but that was not enough to completely relax the ethereum network. ETH transaction fees do not stop rising due to temporary solutions.