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ETH Collapses: Transactions Take 40 Minutes


Today is a tough time for the crypto market, and for all of humanity in general. The confirmation time for transactions in the second cryptocurrency of the ecosystem, Ethereum (ETH), has increased to 44 minutes.

A context for those readers who don’t know much about the Ethereum ecosystem. The average ETH Blockchain transaction is a maximum of 5 minutes in a normal day.

The Coronavirus Effect strongly impacts ETH

There was a market crash that led Bitcoin to drop from $ 7,000 to as much as $ 3,700 in a matter of hours. This collapse hit the second most important crypto of all hard.

Ethereum fell from over $ 200 to $ 130. This caused panic in the ETH blockchain network.

The rush to send the tokens to the crypto exchanges seems to have caused mega congestion on the network. Mainly due to the movements of the most moving stablecoin currently, Tether (USDT).

This, in turn, generated the increase in the price of GAS, which added much more fuel to the fire.

Although the price of GAS for ETH transactions has not increased exorbitantly, $ 0.58 is required. The biggest problem is that the transactions of the world’s largest stablecoin Tether (USDT) have also been affected.

Well, as is normal in the cryptoverse in cases of incredible volatility like this, traders and more members of our ecosystem take refuge in stablecoins.

The nearly 2.9 billion USDT Stablecoins can only be moved thanks to the ETH Blockchain. This also means that exchanges between exchanges are also being much slower.

In short, the ETH network was subjected to a stress test due to the higher number of transactions.

With current throughput of up to 15 transactions per second and the numerous use cases, from DeFi to thousands of dApps, the network quickly reached its limits.

This resulted in a backlog of transactions, which increased the confirmation time for a transaction on the Ethereum network to 44 minutes.

No need to worry

Given the current scenario where everything seems to be going in fast motion, with the number of people infected with the Coronavirus continuing to rise, countries are quarantining their cities. It causes markets to trend downward, reflected when volatility in the cryptoverse increases.

Although a slow network could indicate potential problems, and it is most likely that it will cause problems for some of the participants, since they seem to have little time before their transaction is validated due to the incredible volatility of the market.

The truth is that the Ethereum network has also become congested during boom periods or during high-level use of a game like Cryptokitties, or from the use of a Smart Contract. But this time the network reacted to market conditions, with possible repercussions and liquidations.

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