Cardano network users are looking at a new issue that was somewhat anticipated. According to the latest online data analytics, users are worried about a sudden increase in the transaction fees on the Cardano blockchain. This sudden price hike is linked with the recent rise in user engagement and online traffic on the Cardano network.
It is worth mentioning that Coinbase recently added staking support for ADA, a token native to the Cardano blockchain. Soon after the introduction of the new service, an increase in the online traffic and ADA token value became visible. Messari, the dedicated on-chain aggregator for the Cardano network, reports that the fee histogram indicates a 100% rise since August last year.
Cardano Users have Mixed Feelings About the Recent Exponential Rise in the Cardano Gas Fees
Messari analysts postulate that some other factors like a sudden increase in utility or ratio of intraday transactions can be a possible reason behind the gas fees hike. On the year-to-date scale, trading volume and parallel project affiliations have increased for the Cardano network. The introduction of NFT minting pads, staking pool, P2P lending, and DEX platforms have encouraged a greater user interest.
For some users, the unexpected gas fees hikes are nothing short of red flags, possibly signaling a latent demise of the PoS network. However, others are not worried and take this as a positive sign of the increasing popularity of the Cardano network. Despite the 100% increase per transaction cost set on the Cardano network is still set at $0.5.
At this point, some users are drawing comparisons between Ethereum and Cardano network issues. With the arrival of the NFT craze, trading activity on the Ethereum network blew up, giving rise to its massive gas fee issue. The main selling point for the Cardano network is to provide cryptocurrency traders with smaller gas fees in comparison to its biggest competitor, i.e., Ethereum.
Experts postulate that if Cardano trading activity ever matched Bitcoin or Ethereum, its transaction fees can reach up to $10. Another important factor for ADA traders is the smaller per unit cost that allows more people to assume more ADA positions. At its peak, Ethereum gas fees rise as big as $50.