How Layer 2 Is Primed To Solve Scalability Issues of Ethereum before the Launch of ETH 2.0
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The CEO of Binance, Changpeng Zhao (CZ), has recently revealed the negative impact of the ever-increasing Ethereum (ETH) gas fees.

CZ made this known in a tweet a few ago. Going by his account, the ETH network’s exorbitant gas fees make most exchanges run with $10 to $20 loss on each withdrawal.

He further added that the leading cryptocurrency exchange Binance is planning to make adjustments to its withdrawal fees.

CZ Binance tweeted, “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.”

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Ethereum Miners Gain $500,000 Transaction Fees in Just an Hour

A recent report stated that Ethereum miners accrued the sum of $500,000 in transaction fees in just an hour, which is a new record high.

Crypto analytics platform Glassnode “Crypto analytics platform Glassnode Ethereum miners earned over $500,000 USD in transaction fees in the past hour. That is a new record high for a single hour (anomalous transaction fees earlier this year excluded).”

Ethereum miners are rejoicing, but on the other hand, is the raised concern over the constantly growing gas fees for the past months. Reports have it that the increase in gas fees has not only been condemned by Ethereum enthusiasts, rivals are also criticizing the unpalatable situation. As of now, no clear means have been devised to stop this menace.

According to a recent prediction shared by the CEO of ShapeShift, Erik Voorhees, “Ethereum gas fees ruin Defi for normal users (until Ethereum 2.0 in 1-2 years)”, adding that this alone is enough to push many developers away to start building on other platforms alike.

In another development, the co-founder of Ethereum, Vitalik Buterin, once again acknowledged the issue related to transaction fees but suggested that users should adopt the use of layer two technology to minimize the problem.

Buterin noted:

“To those replying with “gas fees are too high”, my answer to that is “well then more people should be accepting payments directly through zksync/loopring/OMG”. Seriously, scaling to 2500+ TPS for simple-payments applications is here, we just need to… use it.”

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Tobi Loba

By Tobi Loba

Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.