In a recent tweet, Binance CEO, CZ, hacked Ethereum, pointing out its downside: transaction fees are too high. For him, only the wealthy can afford to pay fees to transact Ethereum.
I like ETH, I just don’t use it anymore.
— CZ ? Binance (@cz_binance) February 27, 2021
Ethereum has become a blockchain for the rich guys, according to the CEO of Binance
CZ’s judgment is not really wrong. Throughout 2021, average transaction costs on Ethereum have grown as fast as ETH price, from averaging below $ 5 last year to around $ 15 today. Just four days ago, the average network fee reached ATH near $ 40.
Graph showing fees on the ethereum blockchain | Source: yCharts
However, this is the cost per transaction. Traders operating on DeFi or productivity farming platforms have to deal with the ability to pay more than $ 100 for every transaction they make daily.
Later, CZ stated that he is no longer using Ethereum. Binance is developing two projects to compete directly with the two largest blockchains in the ecosystem.
Binance Chain is designed to enable extremely fast payments with minimal fees. It will be a direct competitor to Bitcoin due to its limited focus on sending and receiving money.
On the other hand, Binance Smart Chain allows for the implementation of smart contracts more efficiently and cost-effectively than Ethereum.
The rise of projects like Polkadot, Binance Smart Chain, and Cardano is a sign of a growing interest in finding a blockchain that can potentially replace Ethereum. Yesterday, Cardano ranked third among cryptocurrencies with the largest market capitalization, removing BNB from its recent position.
Like Binance Smart Chain, Cardano seeks to execute smart contracts quickly, cheaply, and securely. However, as a difference, Cardano has a more complex design and a much longer roadmap.
However, Ethereum developers are working on the second version of the blockchain. Ethereum 2.0 will have several layer 2 implementations. According to some enthusiasts, the new blockchain will process thousands of transactions per second – even hundreds of thousands when fully deployed, according to Vitalik Buterin.
Perhaps, once Ethereum 2.0 matures, it will return to being a blockchain for the poor, and crypto billionaire CZ will love it again.
You can see the Ethereum price here.
Read more:
- Questioning Whether Binance Suspends Ethereum Withdrawals For Potential Wash Trading Of BNB?
- Ethereum Price Has Hit A New All-Time High Above $2,000