Ethereum users now have to pay significantly higher transaction fees due to the increasing network load.
The average price of gas (the “fuel” of the Ethereum blockchain) has tripled in the last month, reaching 41 gwei.
The blame is on the ponzi scheme
The culprit for the increasingly expensive transaction fees seems to be MMM Global, a Bernie Madoff-style poncho scheme that offers a constant return of one percent to its uninitiated investors.
MMM Global appears to be among the largest holders of the Ethereum-based stable coin PAX, although it has no connection to the Paxos Standart. Due to the many PAX transfers, Etherium’s network is becoming increasingly congested, leading to transaction delays.
From Cryptokitties to Black Thursday
Transaction fees can also jump during volatile market movements that force traders to exchange their coins.
After the price of ETH fell by 36 percent on Black Thursday (March 12), it took hours to process a transaction.
In December 2017, during the heyday of the most famous altcoin, the Ethereum-based game CryptoKitties jammed the web when the share of transactions rose to 12 percent.