Will ETH prices rise when its network usage at a historical high？

[Hugo Barbosa]

According to a recent report from Delphi Digital, the amount of Gas used on the Ethereum blockchain is at an all-time high, and the number will continue to grow. Gas is used as a way to charge for the Ethereum blockchain, and the total amount of gas used online has been rising since the beginning of 2020.



Gas usage and possible maximum fuel   -  sources: Delphi Digital

The total amount of ETH gas used is different from the transaction cost indicator in the BTC blockchain. On the Ethereum network, transaction and intelligent contract fees are determined by the amount and price of gas required, which allows fees to change dynamically and separated from Ethereum's price to a certain extent.

The amount of gas used in a given transaction depends on the computational complexity of the transaction. Gas prices, on the other hand, are chosen by the person executing the transaction and priced in Ethereum. The price is ultimately set by the miners, who accept or reject the deal based on the gas price.

USDT and DEX leads the market

While gas usage reached an all-time high, the number of transactions on the Ethereum blockchain is still far below  1,349,890, the transactions reached on January 4, 2018.

This means that most of the increase in total gas usage comes from the use of smart contracts, which are more complex and therefore require more gas.

According to ETH Gas Station, the majority of gas usage comes from USDT, of which used about $1.61 million of Ethereum Gas. This is more likely followed by DeFi and some scams and Ponzi schemes. USDT also leads in average gas prices used, at 35.5 Gwei.

After USDT, DEX appears to be in the lead in popularity. According to DappRadar, IDEX is the most used Dapp in terms of the number of transactions alone, while IDEX and Kyber are among the top three on the Ethereum network.

A recent survey also shows that DeFi's highest awareness and usage comes from DEX.





Higher transaction fees and gas restrictions

The increase in the use of the Ethereum network led to an increase in average transaction costs as miners preferred to deal with higher gas prices.

Total gas usage is limited by miners, which limit the size of the Ethereum blockchain by determining how many transactions are in a block.

Ethereum is likely to face network congestion soon due to several factors, including the current increase in the use of gas on the network and related block gas restrictions. If gas usage rises to the upper limit, users will have to compete with higher gas prices to execute trades and smart contracts.

Also, a sudden collapse in Ethereum prices can lead to higher fees and network congestion. According to a report by The Block, on March 12th, the average fee costs increased from $0.16 to $1.04.

When the usage is close to the limit set by miners, we may need to add the block gas limit. The most recent increase was in September 2019, when the block gas limit increased by 25%, from about 8 million to about 10 million.

However, the change will further increase the size of Ethereum's blockchain, which is already nearly 140 GB. Therefore, seeking a more efficient method of investment has become a new way out for many people.

Take BitOffer as an example, the biggest feature of BitOffer option is that no matter whether it is a bull market or a bear market, it has the opportunity to obtain up to a thousand times of excess income without any margin or handling fee. Bitoffer options provide sections of 2 minutes, 5 minutes, 15 minutes, and 1 hour. Besides, it is worth mentioning that the ETH option spot index is composed of the equivalent weights of 7 exchanges.

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[Andruha1993]

I also recently noticed that the price of gas began to rise, and this is sad news for me. But I think that soon everything will recover and the price of gas will fall and the price of Ethereum will rise.

[comer]

Ethereum price is moving up, I think that's one reason why gas price is increasing because they are proportional. As long as it's not exceeding beyond acceptable range of charge, I think there would be no problem.

The more actively the coin moves the bigger the chances for the coin to move up and would not end up obsolete so I think it on a positive way rather than the other way around.

[Seerge]

I hope when the Ethereum blockchain usage is at its highest peak it will not cause an increase in gas prices that we need to send ethe-based coins or Ethereum tokens.  But I hope that increasing use of the Ethereum blockchain will make Ethereum prices go up high.

[Cici Lee]

I hope when the Ethereum blockchain usage is at its highest peak it will not cause an increase in gas prices that we need to send ethe-based coins or Ethereum tokens.  But I hope that increasing use of the Ethereum blockchain will make Ethereum prices go up high.

These are the dream come true (except for the miners)

[ShadowCrypto]

No, but the ETH 2.0 upgrade will make the price pump, in my opinion, if we want to buy we need to do it now and try to accumulate as much as possible to get staking rewards on ETH.

[Rakin343]

Actually after upgrading the Ethereum block, i don't send my assets due to high gas block. It should be over 0.79$ all time in my wallet.

[Hugo Barbosa]

BitOffer options should be a nice choice at this point.

[TomPluz]

No, but the ETH 2.0 upgrade will make the price pump, in my opinion, if we want to buy we need to do it now and try to accumulate as much as possible to get staking rewards on ETH.

Many Ethereum enthusiasts and holders are now looking forward to the effect that Ethereum 2.0 upgrade can be making on its price. Definitely, this can be so positive for the network and even if gas price can rise it does not matter to me.

[Michael.sol]

I also recently noticed that the price of gas began to rise, and this is sad news for me. But I think that soon everything will recover and the price of gas will fall and the price of Ethereum will rise.

I also shocked to see gas is all time high at this moment . That's is only one reason behind dropping the price of Etherium . Hopefully Etherium recover in its price soon as possible .

[Tanimariya]

The price of ETH will increase, as will the price of gas. This is the ultimate reality. But if everything goes to the gas price, then those who will do the transaction, what will they have. But I think its plan will change for the better. So I think there should be good thinking about gas price.
But I'm still not sure how eth 2.0 will work. So I'm optimistic that something good will happen.

[IyemRoker]

If we look for an increase in the price of Ethereum it will definitely probably go up in price because Ethereum is certainly used by many traders even though the price for GAs transactions are expensive.
I also believe this is the desire of the miners for their costs and this may be reasonable because the miners also want to get more profit from each transaction.

I believe this is still normal and still on the radar of reasonable prices for GAS costs.

[syedrasool2011]

Yes ETh price go tomuch high i think ETH PUMP 10K in few weeks Eth blockchain usage is at its highest peak it will not cause an increase in gas prices that we need to send ethe-based coins or Ethereum tokens.

[gulsoom2020]

yes ETH price will rice this month to much fast will cross 500$ just buy it hold it

[hushpupppy]

to some extents, i want to believe that the etherum prices as an excessive attempt by the etherum miners to earn more from transaction fees. I don't have concrete reasons but there are no honest opinions or reviews as to why the gas fees should exceed that of etherum. Still we have to adjust to the demands of the network fees if we want to send out our tokens.