Well-known crypto influencer Lark Davis or “The Crypto Lark” has warned that Ethereum’s competitors will continue to pull users out of circulation unless Eth2 hits the market soon, given the ever-increasing gas fees.
Despite forecasting five-digit Ether prices in 2021, Davis’ Feb. 19 video, Davis claims that Ethereum’s skyrocketing fees have meant that only “wealthy investors” can afford the network, prompting smaller users to do so to switch to competitors like Binance Smart Chain (BSC). .
Davis noted that BSC is currently seeing a surge in popularity, with volumes for BSC-based DApps overtaking their Ethereum-based competitors.
Describing the current gas tariff prices as “total loco”, Davis urged Ethereum developers to accelerate the rollout of Eth2 in response to the skyrocketing surge to prevent users from further exodus to cheaper alternatives:
“But we have now reached the point where ETH 1.0 – oh, we need ETH 2.0 so soon, come on, Vitalik, go on, man – ETH 1.0 – most regular users no longer have a price for using it most of the applications on Ethereum. […] A transaction at Uniswap costs an average of $ 50 these days, and that’s just insane. “
Phase 0 of Eth2 started in December 2020, allowing Ethereum users to lock their Ether for staking. With the introduction of phase 1 by Eth2, which is expected to introduce sharding at the end of 2021 at the earliest, robust scaling functions are to be activated.
Average transaction prices for Ethereum have soared to its all-time high of around $ 30, according to Bitinfocharts.com. At the time of the crypto market flash crash in late trading on Monday February 22nd, the average gas fee was $ 50.
