Ethereum network fees fall, and BitPreço accepts deposits on ERC20 again
In 2021 we saw the cryptocurrency market get very heated, with historic highs of the main currencies, and a great movement of new investors. Aspects that are very positive for promoting the market. But that also brought some unwanted reflexes.
This was exactly the case with the Ethereum network, and its transaction fees, which broke records in value, with operations with withdrawals and deposits of ERC20 tokens reaching up to $200 at times.
Ethereum is an innovative network, being the original responsible for the introduction of smart contracts (Smart Contracts), and an ecosystem conducive to the creation of decentralized applications (dApps). But network fees are an old problem. Network fees represent the cost necessary for the network to keep running and carrying out transactions normally. All transactions on the network have a fee, which has a variable cost, taking into account market supply and demand.
Moments of high traffic on the network can cause rates to skyrocket. And this movement took place in the 2021 bull run, directly reflecting on rate values. In order not to have to pass these costs on to customers, BitPreço decided to temporarily stop using this network.
In 2022, the rates of the Ethereum network have been reaching lower and lower values, also a reflection of the broad drop in the crypto asset market. This is due to a decline in the price of ETH, and a decrease in network usage, especially DeFi applications. Faced with this new perspective, BitPreço made the decision to return with deposit services in ERC20 tokens, especially Tether (USDT), the currency that brought the greatest demand for the service. In addition, other platform tokens also use this network, such as PAXGold, BRZ Token, UNI, Axie Infinity (AXS).
It is important to remember that the next major update of Ethereum, “The Merge”, scheduled for September 2022, does not bring prospects of reducing rates. But the reduction should happen in the future, with the implementation of Sharding (a division of the network into independent parts) in the network. Rates seem to have dropped these days due to low network usage, especially DeFi apps.
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