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Cryptocurrency

Why Ethereum transaction fees are often expensive

According to Ycharts’ report, the average Ethereum gas price as of 27th of February, 2021 stands at 158.44 Gwei.

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Ethereum, cryptocurrency, Crypto: Large investors transfer over 700,000 Ethers
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The cost of moving Crypto on the Ethereum network is on its record high as some transactions on the Ethereum network require as high as over $100 gas fee to go through.

According to Ycharts’ report, the average Ethereum gas price as of 27th of February, 2021 stands at 158.44 Gwei.

It is very much difficult to overemphasize how the recent spike in Ethereum gas price has adversely affected ERC-20 projects in terms of running microtransaction payments on the Ethereum network

READ: 52.5 million Ethereum wallets are making money

Currently, some transactions on the Ethereum network cost as much as $100 and this remains a big concern for traders as they spend a lot in gas fees.

Gas fees are the fees required for transactions to be executed and validated by miners. The gas fee is an essential part of the Ethereum network and is dynamic as it fluctuates depending on network demand.

Adebayo Juwon, African Lead at FTX, a leading crypto exchange in an exclusive interview with Nairametrics gave key reasons why such costs are usually high;

“Sometimes, a transaction can experience a delay or total rejection if it does not meet the miners’ threshold. This threshold is dependent on two factors-network usages and congestion. Congested networks benefit miners more as they can charge excessive-high gas fees.

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“Paying as high as a $60 fee on a single Uniswap transaction or a $10 to $40 fee just to withdraw an asset from a cryptocurrency exchange nullifies one of the important goals of blockchain technology which is ensuring minimal transaction fees traditional financial systems,” Juwon said.

SSKOHN

READ: Nigeria to generate $6 billion through Blockchain by 2030-NITDA

That is wholly responsible for why Ethereum miners are most certainly smiling to the bank now. This reaction is triggered by transaction costs on the Ethereum network recently reaching a new hourly record.

Data retrieved from Glassnode, a crypto analytics firm, revealed that ETH miners on the network earned a staggering $3.5 million in just one hour.

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Adebayo, however, revealed some Crypto exchanges like FTX  offer zero withdrawal fees to their users irrespective of the network an asset to be withdrawn belongs to.

READ: Binance Coin moves faster than Tesla, gains 114% in a week

What you must know: Ethereum Mining is a computationally in-depth work that requires a lot of computing time. An Ethereum miner gets rewarded for providing solutions to complex mathematical problems via blockchain technology.

At the moment, low capital traders may have no other option than to abandon blockchain transactions for the big guys because, in most cases, the little profit made may not be able to cover blockchain fees, especially during the withdrawal of crypto assets as all cryptocurrency exchanges charge standard Ethereum gas fee on all withdrawals.

The incessant hikes in Ethereum gas prices are turning the cryptocurrency ecosystem into an adventure exclusively for the Whales but fortunately, a thing like a Zero withdrawal fee ensures everyone has equal opportunity to be part of this ecosystem.

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Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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Cryptocurrency

Nigerian stocks that outperformed Bitcoin, Ethereum and Cardano in April

According to data tracked on the NSE, the shares of Japaul Gold and Ventures Plc, Meyer Plc and University Press Plc delivered better returns than Bitcoin, Cardano, Ethereum.

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Crypto
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The recent crypto-mania has presented investors who are nervous about the stock market with key opportunities to capitalize on, through alternative investments in cryptocurrencies.

The attendant effect of this led to the move which saw the total market capitalization of Bitcoin, Ethereum, Litecoin, XRP and other crypto assets surge above the $400 billion mark in Q4 2020 to more than $2 trillion in recent times – the total market capitalization of all cryptocurrencies are valued at about $1.74 trillion as of the time of drafting this report.

Despite the gains Bitcoin, Ethereum and Cardano delivered to their holders, the market performance of these digital assets since the beginning of April has been comparatively unimpressive. Of the three cryptocurrencies, only Ethereum maintains month to date gains in excess of 15%, while the month to date losses in others stand in excess of 12%.

READ: Heavy sell-off in Guinness shares leads to N6.9 billion market value loss in a single day

The performance of these digital assets so far in April

Data tracked on Binance, a cryptocurrency exchange that provides a platform for trading various cryptocurrencies revealed that Ethereum’s month to date gains in the month of April is put at about 15% while the month-to-date loss of Bitcoin and Cardano is put at about 16% and 12% respectively.

Stocks on NSE delivered decent returns in the month of April, outperforming some cryptos. Some stocks on the Nigerian Stock Exchange have delivered impressive returns for their holders in the month of April, despite the recent lacklustre state of key shares listed on the exchange.

According to data tracked on the Nigerian Stock Exchange, the shares of the following companies have delivered better returns than Bitcoin, Cardano, Ethereum and some other cryptocurrencies so far in this month.

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READ: America’s oldest bank set to accept Bitcoin

SSKOHN

Japaul Gold and Ventures Plc

(JAPAULGOLD), MtD gains: 46.83%

The rebranded and restructured mining company with a key focus on gold and other solid minerals exploration is the best-performing stock on NSE this month with a month to date gain of about 46.83%.

Despite the fact that the stock is currently trading slightly below its open price of N0.62 per share for the year, it has risen from a YTD low of N0.41 to the current N0.60 per share price in recent times. Thus returning a gain of 46.8% for its holders.


Meyer Plc (MEYER)

MtD gains: 29.16%

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The shares of the key player in the paint and decorative industry increased from N0.41 per share at the open of trade this month, to N0.53 per share as of the open of market this morning, to print a month to date gain of 29.16%.

The stock of the paint manufacturer is presently trading about 6% higher than its open price of N0.50 per share for the month of April.

READ: Bitcoin investment tips for 2021


University Press Plc (UPL)

MtD gains: 19.77%

The shares of one of Nigeria’s foremost publishers of educational and general reading materials, University Press Plc have increased from N1.07 per share at the close of trade on the 31st of March, to N1.28 per share at the open of trade on the Nigerian Stock Exchange today.

The recent surge in the shares of the company was triggered by buying interest on the floor of the exchange and this renewed interest in the shares of the publisher has seen its shares return an impressive 19.77% month to date gains to investors since the start of this month.

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What you should know

  • The Nigerian Stock Exchange All-share Index “NGX ASI” is on course to deliver its first weekly gains after weeks of consistent depreciation in the market index and capitalization.
  • This decent performance can be linked to the renewed buying interest in the shares of some key companies with impressive fundamentals as Q1 2021 financial results start to trickle in.

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Cryptocurrency

Billions of dollars lost in Crypto market, as over 500,000 investors get wrecked

The crypto market suffered heavy losses in the early hours of Friday with many traders liquidated as the flagship crypto dipped below the $50,000 price levels.

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The crypto market suffered heavy losses in the early hours of Friday with many traders liquidated as the flagship crypto dipped below the $50,000 price levels.

In the cryptoverse hundreds of billions of dollars were virtually wiped off in value as the global crypto market lost about $300 billion, trading at $1.77 trillion, a 12.29% decrease over the last day.

As traders panicked, the world’s most popular crypto rout deepened, dropping below the $50,000 level to $48,400, its lowest levels in about seven weeks. Ethereum, the leading altcoin plunged as much as 10% before steadying at about 7% to trade at $2,240.65 on the FTX exchange.

READ: Crypto Armageddon: Over $200 billion wiped off in the Crypto market 

For the day about 582,578 crypto investors were liquidated. The largest single liquidation order happened on Huobi-BTC valued at $11.28 million.

For Bitcoin, this is the biggest percentage loss since early January.

The spiral fall in play at the flagship crypto market pushed its market value below $1 trillion or 51.45% of the total cryptocurrency market value. At its highest, Bitcoin’s market cap was $1,184 trillion.

Amid the recent price correction, crypto pundits argue that the ever-changing crypto market was still in a long-term bull market, though in the near term, a market correction was long overdue since the market is over-heated among retail investors.

SSKOHN

READ: Why Bitcoin might likely hit $100,000 soon

Other Crypto assets were also experiencing sharp sells with XRP, Polkadot, Cardano, BNB, EOS all suffering significant losses.

Tax concerns may be weighing hard on the crypto- verse with reports showing U.S. investors in the Crypto market already face a capital gains tax if they sell the Crypto after holding it for more than a year.

It’s fair to note that the crypto market is very volatile and some crypto experts are pointing out that it could be in a bubble considering that Bitcoin and Ethereum have recorded gains of over 700% respectively within a very short span.

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