Bloomberg - Ethereum at Capacity due to Tether

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We all remember the days when the Ethereum network becamed jammed due to its high utilization at the peak of the bull market in 2017 and early 2018. Dapps like CryptoKitties were filling up the blockchain with their innovative Non Fungible Tokens as the demand for the digital assets could not be higher. In addition, the boom of the Initial Coin Offerings were utilizing a large amount of network resources. This led to high transactions fees which some say led for technology projects to rethink the scalability of the Ethereum network. While it eventually subsided, it also had the secondary impact of new blockchains coming to market to compete for the Dapp platform alternatives like EOS, Tron, and Cardano.

As the worst of the bear market has gotten behind us, Dapps have continued to build and develop on the network but it is once again getting backed up as the interest to participate in the Cryptocurrency markets has drawn an increased demand to one particular and controversial ERC-20 token, Tether. Tether's market capitalization has reached $4 billion which places it as a Top 10 digital asset. In addition to utilizing a high amount of exchange volumes, Tether is utilizing a large amount of resources on the Ethereum Network. It is the largest paying token with regarding to fees as it fluctuates around $250k on a monthly basis.

This has led to some concerns on the ability to not only scale quick enough but also continue to attract developers given the ambitious goals of the Ethereum Foundation. However, development has continued on the upgrade coming which include staking and sharding which will add scaling. Given the continued attractiveness to develop on the longest standing Dapp platform and proven token creation network, they may still have time to get back into the leadership position in the blockchain side.

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Comments 5

It will be neat to see if, like Vitalek suggested, they use BitcoinCash to fix some of these issues in the short term.

06.09.2019 19:04

At least it will give Bitcoin Cash another use which it seems it needs these days!

06.09.2019 22:05

I still think Ethereum is a better platform given how decentralized it truly is!

06.09.2019 21:54

Very true! Others have not been able to achieve the distribution that Ethereum has.

06.09.2019 22:05

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08.09.2019 00:30