Ethereum Network not without its challenges as demand cloggs the system delaying some listings

Ethereum Network not without its challenges as demand cloggs the system delaying some listings

Ethereum Network not without its challenges as demand cloggs the system delaying some listings

By Staff Reporter

 

Ethereum has outperformed major digital currency rivals this year, bolstered by the surge in decentralized finance (DeFi) and the anticipation of a technical adjustment this summer, but it faces hurdles that could stall its rise.
With a jump of more than 350% in its price this year, Ethereum has the second-largest market capitalization after bitcoin, but not as much cache and perhaps more operational challenges that could prevent it from eclipsing its major rival.
In the crypto world, the terms “Ethereum” and “ether” have become synonymous. Technically, Ethereum is the blockchain network in which decentralized applications are embedded, while ether is the token or currency that enables or drives the use of these applications.
Ethereum’s market cap on Friday was $410 billion, second to bitcoin’s at more than $1 trillion, according to data tracker CoinGecko.com. It hit a record high of $3,610.04 on Thursday and was last up 1% at $3,524.

Bitcoin, meanwhile, has risen a more modest 97% this year. Since hitting an all-time high of just under $65,000 in mid-April, bitcoin has actually fallen roughly 18%.
A rise in institutional interest has increased Ethereum demand, but supply has been limited. The token’s supply in exchanges in April hit its lowest in nearly 2-1/2 years, according to Kraken Intelligence, a research blog from cryptocurrency exchange Kraken.
“It’s more than just a coin. It’s a whole ecosystem that allows other applications to be built,” said Bradley Kam, chief executive officer of blockchain domain provider, Unstoppable Domains.
At the heart of Ethereum’s ascendancy is DeFi, which refers to peer-to-peer cryptocurrency platforms that facilitate lending outside traditional banking institutions. Many sites run on the Ethereum network, using an open-source code with algorithms that set rates in real time based on supply and demand.

The value locked – the total number of loans on DeFi platforms – was $79 billion as of Friday, DeFi Pulse data showed, up nearly 600% from $11 billion in October.
DeFi, however, has its problems. Dune Analytics research showed 2%-5% of transactions on Ethereum-based decentralized exchanges failed due to complications such as slippage or insufficient “gas” prices, which are the fees required to successfully conduct a transaction on the Ethereum blockchain.
Between April 15 and April 21, for instance, roughly 1.1 million transactions were made on Uniswap, a DeFi protocol used for exchanging cryptocurrencies. Of those, 241,262 failed, representing the largest number of transaction failures across the entire Ethereum network, data from analytics platforms Etherscan and Dune Analytics showed.
“DeFi is destined for meteoric growth, but that growth inherently comes with risk,” said Alex Wearn, chief executive officer at crypto exchange IDEX.

“Issues such as failed transactions and front-running are not subtle, costing users millions of dollars every day,” he said, referring to the practice of getting a transaction first in line in the execution queue right before a known future contract. “These major … problems limit the appeal of these products for a wider audience and ultimately hinder the ecosystem’s growth.”

The surge in demand for Ethereum has even caused some listings to be delayed due to delays in loading wallets from network slowing

One such listing, Bitcoin 2.0 that issuing the Ethereum network, that was planned for a low hype release on May 14th, has suggested the Ethereum network slowing and clogging, has caused it to push its list date back two weeks to May 28th, to complete wallet loading.

Below is what it’s press release stated:

Bitcoin 2.0 listing very close.
Plans are on track for the Bitcoin 2.0 listing on Wozinga and on its new partner Exchange Bitxchange (launching specifically in time for the Bitcoin 2.0) Note.

There is a team of over 100 staff operating very long hours to get the listing on the exchange to have the listing be open to as many of the public as possible from day one.

Due to the unprecedented demand, the exchange’s listing Bitcoin 2.0, still requires more time for the listing to go live. Otherwise many won’t be able to purchase or trade from day one until their accounts are open and verified.

The exchanges have asked us to agree to the listing date being pushed back to May 28th to enable as many trading accounts to be opened and completed and all wallets loaded and delivered first.

Wallets for Bitcoin 2.0

These are being loaded as we speak and verified before being issued.

Over 50% have been loaded and issued already.

Due to the slow down in the Ethereum network, it has contributed to delaying the loading of wallets, but we expect them to be all loaded and issued very soon.

However unfortunately they haven’t been able to achieve loading all wallets to be able to list on May 14th.

It is expected the balance will be sent out this week if not over the weekend.

Once again due to above expected demand and the surge in etheruem, the workload has caused it to take longer than planned.

Please be patient as more wallets are loaded and issued.

.

We appreciate your patience while we finalise and ensure everything is ready to go live on the exchange.

Bitxchange and Wozinga have exclusive rights for the initial 60 days from listing to purchase and trade Bitcoin 2.0.
You can acquire more Bitcoin 2.0 via the exchange.
Note- anyone buying Bitcoin 2.0, via the exchanges, once listed can sell them at any time without restrictions.

To open a Bitxchange account to trade ie buy or sell Bitcoin 2.0 then visit www.bit-xchange.co to pre register for opening a trading account.”

The Ethereum network is expected to continue to slow as demand surges at times while the network looks at solutions to overcome such lags, said one industry insider.

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