Ethereum transaction fees have remained very high despite improvements added to the blockchain. Ether is still on a bullish trend owing to the launch of three Ethereum ETFs in Canada.
High transaction fees on Ethereum have been one of the most significant limitations of using this blockchain. The fees on the platform hit a record high of $24.74 on April 16. This rise may have been attributed to the increased demand for using the Ethereum blockchain.
The surge in transaction fees comes just one day after Ethereum launched the ‘hard fork’ upgrade. The upgrade was meant to reduce the high transaction fees deterring DeFi developers from using the blockchain. However, ‘hard fork’ has not lived up to its promise, and the increasing demand for the blockchain has raised the transaction fees.
Ether’s Performance on the Crypto Market
The performance of Ether (ETH) has been awe-inspiring. On April 16, this coin reached its highest price of above $2500. This has been a record mark in its bullish trend from the first quarter of the year. Ethereum has increasingly tried to maintain its value above $2000 since 2020.
However, the bullish trend of Ether was disrupted briefly in a sudden market crash that happened on April 18. As of writing, this crypto was trading at around $2120, which is a 13% dip over the past 24 hours.
Increasing demand for Ethereum Blockchain
On April 16, three Ethereum ETFs were approved in Canada. These are expected to start trading on the Toronto Stock Exchange from next week. The ETFs were launched by CI Global Asset, Purpose, and Evolve. Canada had also earlier approved three Bitcoin ETFs from these firms. Purpose’s Bitcoin ETF accumulated $421 million in just two trading days.
Exchange-traded funds have become increasingly popular in recent months. An ETF is a regulated or auditable tool that monitors the price of an underlying asset. In an Ethereum ETF, the underlying asset is Ethereum. ETFs, help investors to trade cryptocurrencies.
The strength of the crypto market has grown tremendously for many years. Institutions are becoming more attracted to the crypto market, and Ethereum is reaping significant benefits from this. After the launch of Coinbase on NASDAQ, it has become evident that major financial players on Wall Street are leaning towards crypto. Optimists are confident that the effects of the Sunday market crash will be overcome as the market is expected to recover in a few days.