Ethereum (ETH) is currently the second-largest cryptocurrency after Bitcoin in terms of its market capitalization. But this Tuesday brought a low for the second-largest cryptocurrency. Resultantly, the price of ETH went low as US$ 369 in less than 24 hours by witnessing a decline of 2.6%.
But that’s not all for Ethereum. Earlier on Saturday past week, the overpopulated Ethereum network also underwent a low in service charges. The network is infamously popular for charging high fees on transactions yet the fee charge went down from its three months low. The current rate of fee was never seen by the Ethereum network before since 12th July.
Ethereum network charges a percentage of fees from the users who carry out their transactions through its network.
Experts from the crypto world were of the view that the reason for the higher Ethereum fee was due to DeFi frenzy. But since the deflation is growing within the DeFi therefore the subsequent low in Ethereum’s fee charges is inevitable.
Evidently, DeFi remained as the most evident factor for the expansion of the Ethereum network. However, Bitcoin’s current rally of high price is attracting too many investors. Some are even suggesting that the DeFi trend is making a shift from Ethereum towards Bitcoin.
Currently, the price trending of Bitcoin is on a rising tide. It has moved beyond US$ 12,000 in less than 24 hours. The crypto technicians are expecting that Bitcoin will continue to amaze crypto enthusiasts in the coming days.
On the other hand patrons of Ethereum have said that the present times are not favoring Ethereum. However, it only needed another push from DeFi, and Ethereum will be put back on its track.
A big boost for Ethereum is expected when the gas prices will go up.
In addition, Tether – the largest stablecoin of the world, is creating difficulties for Ethereum. As per the report of CoinDesk, Tether’s performance is going head to head with Ethereum. If the trend continued in Tether, there is a likelihood that it will gain more market capitalization than Ethereum in the next five years.
CoinDesk suggests that in the future, Ethereum will need to compete with both, Bitcoin plus Tether.