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Ethereum 2.0 can’t come soon enough

Photo of: Nathan VDH
by Nathan VDH

Ethereum 2.0 urgently! This is the message of influent Lark Davis. For the latter, competition is siphoning off Ethereum users, undermined by its exorbitant trading fees. Developers are called upon to accelerate.

Would there be danger in the Ethereum camp? Indicators could give the opposite feeling. At the beginning of February, the public blockchain reached the mark of one billion transactions. As for Ether, it was flirting with the $2,000 mark.

However, a few months earlier, DeFi actors were already sounding the alarm. This was due to network congestion, which was causing trading costs to skyrocket. At the beginning of 2020, these fees were once again reaching record levels, to the delight of the miners.

But for influential Lark Davis, alias “The Crypto Lark”, Ethereum is in danger. And the threat comes from rival blockchains, which could continue to siphon off Ethereum users.

Excessive gas costs are indeed a winning argument for other blockchains, such as Solana or Binance Smart Chain. At least this is the argument defended by Lark Davis in a YouTube video.

According to him, Ethereum is too expensive. It could eventually be reserved only for “rich investors”. As for the other users, they would have many reasons to be tempted by cheaper alternatives.

Davis is seeing the growing popularity of Binance Smart Chain, with DApps growing rapidly in volume. And the reason is simple: Ethereum’s gas costs are “crazy”.

The crypto influencer therefore believes that developers must now work twice as hard to speed up the launch of Ethereum 2.0.

“(…) most regular users cannot use the majority of applications on Ethereum. …] A Uniswap transaction costs $50 on average these days and that’s just crazy,” he says.

But the completion of the next generation of Ethereum is not for now. The so-called zero phase started in December. It allows users to staunch their Ether on ETH 2.0.

The migration of transactions on the blockchain has to wait. Thus, the scaling functions of ETH 2.0 will only be activated at best from the end of the year. However, they are the ones that must avoid congestion and cost inflation.

In the meantime, these costs remain very substantial. According to Bitinfocharts.com, the costs on the blockchain average $30. On February 22nd, a day of great turbulence on the crypto market, they were even 50 dollars.