Why does ETH continue to rise (why ETH returns are getting lower)

ethwhy has been rising

Editor’s note: This article is from Xiaozha Xiaodian (ID: xiaonazha88), reprinted by the Daily Planet Daily with authorization

The consensus mechanism of Ethereum is that people who execute transactions when running on the blockchain need to confirm whether their account books are correct through the network. When you use smart contracts, it means that we don’t need to rely on a decentralized node, but rather have a certain software system complete the work. Why has ETH been rising? 1、 There are three main reasons why eth has been rising:

1. Its underlying public chain Ethereum PoW mechanism supports mainstream currencies such as Bitcoin and Litecoin 2. Ethereum 2.0 has been released and launched on the testing network RococoV4, as well as relevant information before the main network goes live 3. Due to the significant delay between ETH1.0 and ETH2.0, many people now believe that ETH from 0 to 1 will become the key indicator for the next bull market, but in reality, it is only a matter of time The most noteworthy project at present is the ETH2.0 pledge mining project. Because over time, ETH can attract more people to participate and allow more users to participate in pledging, the price of ETH is bound to rise; Secondly, as an encrypted asset, if there is no guarantee that enough wallets can store a large amount of funds, it may not appreciate like BTC. 2、 Why has ETH been rising? Why has ETH been rising? Many applications in the ecological construction of Ethereum are actually developed based on Ethereum, such as Uniswap, Aave, Compound, and so on, which have brought a large number of incremental users to ETH. Therefore, one of the important criteria for Ethereum community to judge the future development of Ethereum is its technical foundation. Why has ETH been rising? 2. Why does ETH often fall below $1? In 2017, due to the continuous decline in ETH prices, the market generally sold off, resulting in a sharp drop in ETH prices, and ultimately ETH began to decline. However, this situation is not surprising, as ETH has been on an upward trend for a long time, and it was not until June this year that there was a correction

The reason why ETH continues to rise is that ETH experienced a strong rebound in the second half of last year, and Ethereum has also become a hot spot in the global DeFi field

Why is the income of eth getting lower and lower

Original author: William M. Pepper. However, without such incentives to support the surge in demand for ETH tokens, then this would be a problem. Why are ETH returns getting lower and lower? Why is the transaction cost of ETH so high now? This article will explore the reasons why ETH trading prices are low and their impact on the network. What is ETH transaction fee? For users, the ETH transaction fee is determined by providing a block to miners. Therefore, they can receive returns from their native tokens (ETCs). Due to high network usage, transaction costs will increase over time. But in reality, this situation may change when we consider the significant increase in ETH trading volume. The high volatility of ETH fees makes everyone in the network waiting for a new and more efficient way to obtain ETH. However, the total value of these assets does not differ significantly from their issuance. Although the price of ETH has increased, it has also been affected by other factors – for example, recent events indicate that investors are seeking higher prices because they want to exchange their ETH for Bitcoin and other Cryptocurrency Although transaction fees have reached historic highs and are still relatively high, ETH transaction fees have skyrocketed to a historical high of over 150% in the past 24 hours, more than the weekly average set in December 2017. Therefore, in order to make Ethereum an attractive blockchain platform, many people regard it as a second tier extension solution similar to Ethereum. Another reason for the rise in ETH fees is that Ethereum 2.0 deposit contracts introduce a new function that allows users to deposit or withdraw ETH and pledge ETH. This new feature aims to reduce the working mode of the validator, thereby lowering the gas price of ETH. The price of ETHgas continues to decline, and the current minimum cost is only $1, which is approximately 1% of the daily gas consumption used by the ETH network. According to the ETHgasPrice page, users who create new applications on the Ethereum main network may face great pressure from the Ethereum network, because network congestion leads to a sharp drop in transaction costs. If it weren’t for such a thing, the network wouldn’t have resumed normal operation. 2. What is the Eth2 fee? The gas fee on Ethereum has been negative until March 2021, when ETH traders transfer Ethereum on the network instead of doing anything. This is because there are many activities on the Ethereum chain, such as transaction packaging, transfer, wallet, etc As a result, network congestion and transaction delays caused by rising costs have led to network congestion.