The Ethereum network has been greatly affected by the announcement that BlackRock, the biggest asset management in the world, intends to introduce an Ether (ETH) spot ETF.
Fees have gone up as a result of the network’s notable increase in activity in the last few weeks.
Ether scan data indicates that the average transaction fees on Ethereum have surpassed $7. This implies that users might occasionally need to spend more than $10 to complete a straightforward transaction.
The BlackRock news has affected the Ethereum network for a number of reasons.
First off, institutional investors are eagerly awaiting BlackRock’s announcement. The fact that these individuals usually have substantial funds to invest could result in a sharp rise in the demand for ether.
Secondly, institutional investors would have an easier and safer way to invest in Ether thanks to BlackRock’s spot ETF. This might draw more institutional investors to the Ethereum network, raising demand in the process.
The network developers are attempting to find a solution for the issues of Ethereum network congestion and fee increases.
Deploying Ethereum 2.0 is one of the alternatives under consideration; it is intended to increase the network’s scalability.
Nevertheless, Ethereum 2.0 is still in the development stage, and its release date is unknown.
Ethereum users should anticipate that both the network congestion and the fee increases will persist in the near future.
It’s crucial to be ready to pay extra for transactions if you want to use Ethereum.