Investing.com – Investing.com is well known to suffer from scaling issues and increased transaction fees.
As users and developers alike wait for the urgent shift from proof-of-work (PoW) to proof-of-stake (PoS), the negative consequences of these difficulties are increasingly evident.
Blockchair blockchain data miner reveals that in May over 1.2 million transactions failed. This corresponds to an increase of 20 percent compared to the previous month.
This happens especially when the available liquidity is not sufficient to cover the current transaction costs.
What is particularly annoying is that transaction fees are also due if the transaction fails. In some cases, even thousands of dollars have gone up in smoke just trying to process a transaction.
According to founder Vitalik Buterin, the “merge”, the transition to PoS, should take place this summer. This should increase the number of possible transactions, reduce network load, and decrease transaction fees. This is made possible by lowering the cost of a transaction, with energy efficiency improving by up to 99 percent.
Ethereum: technical benchmarks
While Ethereum was able to rally briefly above the psychologically important $2000 mark, Ether failed to reach a closing price above this level.
As long as this is the case, we should expect the rebound from the recent low of $1708 to be just a correction.
In this context, a test of 1708 dollars could take place in the next few days.
On the other hand, a sustainable rise above $2000 and the 23.6% Fibo retracement of $2149 is needed to lay the groundwork for a longer recovery phase.
By Marco Oehrl