Ethereum’s (ETH) Chronic Congestion Caused by Worldwide Adoption: Weiss Ratings

Latest Cryptocurrency News
Sat, 01/11/2020 - 09:28
Yuri Molchan
The major financial agency Weiss Ratings says that Ethereum has brought on a mass crypto adoption, however, it risks losing its customers if it fails with Ethereum 2.0
Ethereum’s (ETH) Chronic Congestion Caused by Worldwide Adoption: Weiss Ratings
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The second-biggest cryptocurrency platform, on which many crypto projects were born, has had a massive congestion issue for a long while already. From time to time, Ethereum devs do something to ease this problem, however, on a large scale, it has not yet been solved.

Ethereum May Have a Bright Future: Weiss Ratings

The major financial and analytical agency Weiss Ratings that watches the state of the crypto industry, says that Ethereum has succeeded in making the crypto community’s dream come true (to a certain degree). Due to being the ‘mothership’ for numerous crypto platforms, including such giants as Tron, EOS and Binance, it has spread the ‘Gospel of Crypto’ all over the world. Hence the overload of the Ethereum network.

Tron and EOS  already offer much faster solutions for dApp makers, including a much bigger amount of transactions per second. The recent amount of dApps and new user accounts started on Tron surpassed those on Ethereum to a great extent.

Weiss Ratings says that unless the Ethereum team finds a way out of this situation, the Ethereum customers will find alternatives to Vitalik Buterin’s brainchild.

The agency believes that Ethereum 2.0, which is in the pipeline to be implemented soon, can save the situation for the network.

Related Ethereum (ETH) 2.0 Network Validation Costs Calculated by Researcher
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Ethereum (ETH) 2.0 Network Validation Costs Calculated by Researcher

The Community Expects ETH Price to Surge in 2020

Due to the active development on DeFi apps this year and a gargantuan amount of Ethereum locked in with DeFi, many experts believe the ETH price will spike this year. As U.Today reported previously, this amount of ETH locked in DeFi is now over 3 mln ETH. The recent Ethereum hard fork in Istanbul has not made any visible progress to the ETH price or the network, however, Ethereum 2.0 is expected to do that for sure.

The major update Ethereum 2.0 is expected to happen in at some point in Q1 this year, however, the developers do not talk about a more or less exact date.

The fast development of DeFi and the approaching launch of Ethereum 2.0 are the factors that the community expects to drive the ETH price to new highs this year.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today, can be contacted at yuri.molchan@u.today.