Ethereum (ETH) reaches its maximum valuation in 2 weeks before slide in price
Ethereum (ETH), one of the top cryptocurrencies in the world has yesterday reached its maximum valuation after a 4% rise in its price. The price soared above the $480 mark for four hours before a sharp crash as the last recorded price dropped to $468.06. It was the highest valuation in two weeks.
The fluctuations in its price indicates that Ethereum is in a volatile state.
Although there have been fluctuations in Ethereum’s price, it won’t considerably have any adverse effect on crypto holders, considering the strong position that the coin holds in the crypto market. The drop in price is expected not to last for very long.
USDT Tether provides Ethereum nearly 26% of its daily volume across numerous exchanges. The maximum focus of trades came from Binance as ETH/USDT trades summed up 5.16% of the daily movement with $84 million worth changing hands.
Effecting Gas Prices
The recent surge in Ethereum prices has led to an average rise in transaction fees of $0.66 Gas during peak times. Co-founder of Ethereum, Vitalik Buterin released a new research paper, accessing the probable ways to control the gas prices on the Ethereum blockchain.
Buterin said, “Currently, almost all blockchains use a mechanism that is equivalent to a first-price auction 4: everyone submits a bid, and then if they get included they pay exactly the bid that they submit. The problem with this kind of mechanism is that there is no simple strategy for choosing the optimal bid price.”
Adding further, he said, “The usual alternative is a uniform-price auction, which involves charging every participant the same price as the price paid by the lowest bidder. This has a much simpler strategy: bid whatever your valuation is. That is, someone who values a transaction getting included at $1 could just bid $1, and the fact that their bid is very high doesn’t mean they have to actually pay a large amount unless everyone else’s bid is similarly high.”
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