New Ethereum Warning Is Released – ETH In Danger Due To Scaling? | CryptoGazette

It’s been just revealed that crypto trader Lark Davis said that the need for the long-awaited Ethereum scaling solutions is surging.

He said that the skyrocketing fees are making ETH basically unusable for a lot of people – an average ETH transaction fee is up by more than 10,600% year-over-year, according to the latest data coming from data tracker Ycharts.

“The situation has become so bad that Ethereum has essentially become a blockchain for wealthy users, and Ethereum is becoming less and less able to handle the massive market volatility days without seeing fees just exploding to insane levels,” he said.

Scaling solutions that could work short-term

On the other hand, it’s important to note the fact that he remains optimistic, pointing to several scaling solutions that could help in the short-term.

“We are seeing more and more solutions for the high fee issues being taken on by individual protocols on Ethereum. For example, dYdX, the Ethereum-based futures trading exchange that basically allows you to do margin trading on-chain. These guys just announced their layer 2 scaling implementation,” he said.

He continued and said: “Trading on dYdX has been basically insanely expensive because of the high fees of Ethereum, but with layer 2 using the exchange, on-chain transactions will now only be pennies per transaction. That is a big deal and an incredible cost savings of many magnitude.”

Check out the video above in order to learn more details about the issue.

Someone said: “From a long term perspective, I think Ethereum’s future will be bright. However, when it comes to the current bullmarket, I’m not sure it will perform as well as expected.”

Another person on YouTube posted this: “Lol everyone thinking cardano or polkadot will dethrone ethereum, so they are selling off. Ethereum is not going to the moon but probably going out of the galaxy.”

Regarding ETH’s price today, at the moment of writing this article, ETH is trading in the red, and the coin is priced at $1,572.69.

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