December 6, 2022

Here’s What Might Hold Back Ethereum (ETH) From Hitting $5000 In Near Term

2 min read

EthereumEthereum

The world’s second-largest cryptocurrency Ethereum( ETH )has been closely following Bitcoin’s footsteps as it touched an all-time high of $4,800 previously today on Monday, November 8. However, ETH presently looks under a little selling pressure doing not have enough support from the bulls to press it past the $5000 milestone.

As of press time, ETH is trading 1.76% down at $4,707 with a market cap of $560 billion. However one major obstruction to Ethereum’s further rally could be its high gas charge. The typical cost of the ETH gas fee has touched the greatest in five months. According to on-chain information supplier Santiment:

Ethereum is sitting at ~$4,780 at the time of this writing, and optimism that $5k is around the corner appears high. Among the few things holding $ETH back is the fact that the typical network charge sits at $63.50, which was last this high up on May 12th.

Courtesy: Santiment Ethereum Competitors Gaining Traction

Ethereum (ETH) has actually been one of the top-performing cryptocurrencies this year in 2021. The Ethereum blockchain has experienced high DeFi and NFT activity this year.

However, the high transaction expenses have actually been a deterrent for brand-new DeFi gamers. Thus, they have been moving to other competing and alternative platforms like Solana (SOL), Polkadot (DOT), and numerous others.

As we have seen, Solana (SOL) experienced an incredible bull run over the last few months making its method to the top-five crypto-list recently. Solana has actually emerged as a true Ethereum challenger with its high deal throughput and affordable transactions. Solana has actually likewise been the home for numerous DeFi protocols and has more than $15 billion in total-value locked (TVL).

Other upcoming gamers in the sector are Avalanche (AVAX) and Fantom (FTM). However, Ethereum still remains miles ahead when it comes to dominating the overall DeFi activity.

However all eyes are currently on Ethereum 2.0 advancement which will enormously take off the network scalability while reducing the transaction costs.

The post Here’s What Might Hold Back Ethereum (ETH) From Hitting $5000 In Near Term appeared initially on Coingape.