The unique addresses for DeFi is growing in an exponential manner. It is important for Ethereum to scale considerably and to on-board the user base. The network usage from DeFi is very high and analysts are wondering of ETH 2.0 will be able to keep up with its network usage with its layer-2 implementations.
Yield farming is causing DeFi platforms mushroom up every other day. The network congestion continues to increase. While the DeFi users are very eager for the ETH 2.0 there are substantial doubts on whether it will be possible to scale the blockchain. Whether it will be enough to scale is questionable.
There are also concerns growing about how ETH 2.0 will influence the already peaking gas fees.
Technically, Ethereum 2.0 will start off with 64 shards. Every shard will potentially operate a separate chain with its own transaction history. Thus, the network will increase its transaction capacity by 64 times.
Of note, Vitalik Buterin has requested that Layer-2 transactions like Zk-sync, OMG, and Loopring be used for simple transfers of Ether. Lot of more changes should either way be put in place to ensure scalability.
Sydney Ifergan, the crypto expert tweeted: “I think the road ahead is going to be filled with more to do than what ETH 2.0 can deliver in scalability. However, this is also due to the massive growth that is happening in the network.”
Despite all these problems, ETH is the next best in the cryptocurrency space. And, the use of Ethereum has already surpassed that of Bitcoin. Ethereum is also gaining importance from the point of DeFi boom. It is worth watching ETH closely. Though, there is more to happen if ETH should challenge the market cap of Bitcoin, investors and users in the ecosystem are also reaping the benefits.
Ethereum (ETH) in Exchanges
The price of Ethereum seems to be consolidating and ETH is locked in smart contracts. The motive of investors is to make more profits. They are doing what it takes to preserve their profits. Not all are high risk investors.
Reportedly, at a commercial level, the balance of Ethereum on the centralized exchanges is falling substantially. While this can sound scary, there are several ETH believers who are holding tight to their balances and they are moving their ETH from exchanges to cold storage or cold wallets. It just looks like people are holding to their crypto, while shifting it from exchanges.