Source: AdobeStock / 2xSamara.com
Since AVAX, the native token of the smart contract platform Avalanche, continued to skyrocket over the weekend, a debate about the persistently high fees in the Ethereum (ETH) network is (again) heating up in the cryptoversum.
The most recent discussion about Ethereum and its fees began when Zhu Su, co-founder of the crypto hedge fund Three arrows capitalHe wrote on Twitter over the weekend that he had “given up Ethereum even though he has supported it in the past”.
As the main reason for abandoning the project, Zhu cites the high fees for the blockchain, which, in his opinion, are not addressed by developers and the community because they are “already too rich to remember what they originally planned”
Perhaps unsurprisingly, the popular crypto investor’s tweet caught the attention of many in the community, with some saying they agree and others coming in defense of Ethereum.
Among the many who took part in the discussion was Antonio Juliano, founder of the decentralized exchange dYdXwhich is based on Ethereum. Commenting on Zhu’s tough stance on Ethereum, Juliano wrote, “This is said much harsher than I would put it, but I somewhat agree.”
But more of a defense of Ethereum comes from Chris Burniske, partner at the crypto venture fund placeholder, said on Twitter that his company is “not giving up ETH”, although they “fully expect a multichain world”.
“Ethereum has a plan to lower fees for a global user base while maintaining credible neutrality. While many Alt-L1s [alternative Layer-1 protocols] are cheaper now because they are much less used, I don’t see any similarly elaborate plans for most of them. We’ll see, ”wrote Burniske.
Layer 1 refers to the Ethereum blockchain, while Layer 2 is any protocol based on Ethereum.
However, and possibly triggered by the tremendous attention its first outbreak had generated, Zhu Su came back with another tweet in which he took back some of the harsh criticism and said, “Giving up is the wrong word”.
He added that “there are great teams out there working to keep Eth scaling up.” [Layer 2]”Although he said he would have preferred a greater focus on” users over owners “.
And while the Ethereum debate continues, Avalanche is increasingly positioning itself with its native AVAX token as a viable alternative for Ethereum users frustrated by the high fees.
The AVAX token is one of the few crypto assets that has risen over the past week, despite the fact that other major assets like Bitcoin (BTC) and ETH along with many other coins have each fallen by around 10%.
Additionally, the AVAX token was included in the top 10 list of Most Valuable Crypto Assets today but failed to maintain its place at the time of writing. At 12:44 UTC, it has a market cap of $ 29.53 billion, which is above the recently trending mem-coins Shiba Inu (SHIB) but below Dogecoin (DOGE) and smart contract competitor Polkadot (DOT).
Avalanche also offers far lower fees than Ethereum, with transfers typically costing less than $ 1 and processing almost instantaneously. By comparison, the average transaction fee on Ethereum today was $ 45.68 (7-day simple moving average), according to data from BitInfoCharts.
The chain has also seen a surge in Total Value Locked (TVL) in Decentralized Financial (DeFi) applications on its platform recently. The TVL hit a new all-time high of $ 12.42 billion on Sunday, after less than $ 8.5 billion earlier in the month.
Avalanche total locked:
Source: DeFi Lama
Zhu Su and his firm Three Arrows Capital are primary owners of AVAX tokens and have also invested in Blizzard, a $ 200 million fund dedicated to developing Avalanche.
AVAX is up 39.2% in the last seven days and down 2.6% in the last 24 hours to a price of USD 133.63. Meanwhile, ETH is trading at $ 4,211, down 9.5% in the last seven days and 3.4% in the last 24 hours.
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