ETH Network Interaction Hits All-Time High: Report

The ETH Network interaction has just hit an all-time high but the gas usage increase could cause more problems for the entire network as we are about to find out in the latest Ethereum news today.

According to the recent report by Delphi Digital, the total gas that is used on the ETH blockchain or the ETH network interaction and reached an all-time high which seems like the figure is still going to increase. The Gas is a measure used to price fees on the ETH blockchain and the use of gas on the network has been rising since the start of 2020. The total gas used is unlike the fee metrics of the transaction in the Bitcoin blockchain. On the ETH network, the smart contract fees are determined by the gas that is required and price of gas which is a mechanism that allows the fees to be dynamic and to get detached from the price of the Ether token.

The amount of gas used in the given transaction is determined by the complexity of the computational power of the transaction. On the other hand, the price of the gas is chosen by the person that executes the transaction and is the price in Ether so the price is determined by the miners who accept or decline the transactions based on the gas price. The gas usage is an all-time high but the sheer number of transactions on the ETH blockchains is far from the all-time high at 1,349,890 transactions that were reached in 2018. This means that the increase in gas usage comes from the high use of smart contracts which are more complex and require more gas.

According to the ETH gas Station, the usage comes from the USDT token with around $1.61 million that is spent in ETH gas fees. This figure is followed by the DeFi applications and a few scams and Ponzi schemes. USDT is leading the terms of the average gas price that is used at 35.5 Gwei. After the USDT stablecoin, the decentralized exchanges seem to take the lead in terms of popularity and according to DappRadar, the IDEX app is the most used app by the number of transactions and both IDEX and Kyber are the top 3 dapps by users on the ETH network.