Ethereum Network Demand High Without ‘Actual ETH Transfers’

The ethereum network is facing unprecedented demand, but it is now used for much more than “merely” transferring ETH tokens. A large part of that demand is due to the activity of smart contracts.

Smart Contracts Take Over Network Usage

The most active smart contract on the ethereum network as of September 15, 2019, is that of a growing ethereum-based Ponzi scheme. The contract took the lead in the past few days, as social media users noted. The scheme is gathering speed, with more users sending in ETH for a short opportunity window for high returns.

The Ponzi scheme contract burned around 27% of all gas as of September 15.

The second-largest contract, “Tether USD”, issues and transfers USDT coins on the Ethereum network, reaching supply of 1.95 billion USDT.

The Tether contract habitually burns up around 30% of all gas on the ethereum network, taking up more computational power than even the most active distributed apps. A usage rate of more than 30% is very rare and usually means the network is overloaded, with higher transaction prices. In the past month, the fees to send ETH, or use the ethereum network, have crept upward, to an average of $0.27.

This price is still relatively low, but the Tether smart contract means some users may have to wait for their transactions to be…

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