Cointelegraph By Samuel Haig
Ethereum’s gas fees are again spiking to record highs, rendering many decentralized finance protocols unusable for casual investors.
After increasing roughly 20% in the last 24 hours, average Ethereum transaction fees are now sitting at a record $17.67.
With many DeFi projects requiring the execution of complex smart contracts, there are reports fees associated with using protocols requiring complicated transactions now exceed $1,000. Amid the chaos, Twitter-user “Olive Allen” reported estimated gas fees of nearly $5,000 to accept a bid on Rarible.
— Olive Allen (@IamOliveAllen) February 3, 2021
When Cointelegraph checked earlier today a single large transaction on Synthetix was estimated at above $1,100 – however the protocol is undergoing an upgrade which could affect estimates.
But even simple swaps using decentralized exchanges Uniswap and SushiSwap cost from $40 to $75.
Tried a $75 swap on sushi earlier. Gas fees were $74 on sushi swap and $37 on uniswap. Zero logical sense to even swap anything with fees like that.
— Kole Pfeiffer (@6pointd) February 4, 2021
Responding to the high fees, ConsensusRough podcast co-host ‘Checkmate’ warned DeFi users to consider the expense involved in executing smart contracts before investing.
He shared the screenshot of a user that purports to show estimated gas fees exceeding the price of Ether. (While this could have been faked, it’s broadly in line with similar reports).
Think very hard about whether you will be able to unwind your defi positions when the time comes to sell and gas fees are exponential.
Worth considering this risk because inability to exit is increasingly looking to be a reality. https://t.co/m9d09pUe0a
— _Checkmate ⚡checkonchain.com (@_Checkmatey_) February 3, 2021
Ethereum is not alone in suffering congestion, with Bitcoin’s average fees currently exceeding $14 too.
Despite the skyrocketing costs associated with utilizing the Bitcoin and Ethereum networks, traders appear vehemently bullish with Ether posting a new all-time of $1,700 at roughly 2 am UTC
Since breaking into new price highs on Feb. 2, Ether has gained roughly 14%. Bitcoin is also rallying, testing $38,000 after gaining 6% in the last 24 hours.
Ether’s record fees are highlighting the utility of second-layer scaling solutions ahead of Ethereum’s Eth2’s overhaul. Synthentix is currently in a staged migration to Optimistic roll ups to alleviate gas prices, while other platforms are exploring rival layer-two solutions such as xDai, or scalable layer-one networks such as Polkadot.
Ankr Network CEO and co-founder chandler Song recently described the crypto bull run as “expos[ing] a lot of vulnerabilities of the Ethereum network, which most DeFi projects are built upon.”
However, DeFi users may not have to wait until Eth2 to see a reduction in gas fees on the Ethereum mainnet, with developer Tim Beiko noting significant progress on the EIP-1559 testnet last month.
EIP-1559 was proposed by Vitalik Buterin and Eric Conner in 2019, recommending the introduction of a burn mechanism to reduce fee volatility. However, with the proposal reducing miners’ revenues to small tips sent alongside a burned base fee, EIP-1559 has been met with significant resistance from Ethereum’s mining community.
Grayscale recently speculated that EIP-1559 could create a “positive feedback loop” for Ethereum’s price should fee expenditures exceed the rate new supply’s creation.
MSFT Stock Still Attractive following Appointment of Microsoft CEO Satya Nadella as Chairman
The tech giant Microsoft announced yesterday that its CEO Satya Nadella had been named chairman of the board.
Microsoft Corporation (NASDAQ: MSFT) stock is trading today at around $258.06 (+0.26%) following the announcement that Chief executive officer Satya Nadella has been appointed as its new chairman, in place of John Thompson.
Microsoft Corporation stock has always been deemed a finished product and unlikely to produce anything great in the long run because they are already big. Many investors are skeptical about the long-term outlook of Microsoft stock regardless of its advantages as a huge tech company. Microsoft Corporation has however recorded impressive numbers this year as continues to grow despite having a $2 trillion market cap.
Microsoft Corporation’s total revenue saw a $6.7 billion rise year over year in its Q3 fiscal of 2021, with every sector of the tech giant, contributing to this growth. Microsoft’s commercial cloud revenue, Azure, and Dynamics 365 grew 33% year over year to $17.7 billion. The tech company’s cloud computing business, Azure, saw its revenue rise by 50%.
The company paid out $16.1 billion in dividends to shareholders over the trailing 12 months ending March 31, with a dividend yield of 0.9%. Although Microsoft’s dividend yield may look small, its current quarterly dividend of $0.56 is up from $0.36 just five years ago and is currently only paying out 30% of its free cash flow in dividends, to make room for annual dividend increases.
Microsoft, shuffling its leadership also couldn’t have come at a better time. The tech giant announced yesterday that its CEO, Satya Nadella has been named chairman of the board. Nadella who according to a statement from Microsoft was “unanimously elected” to replace John Thompson, has served as the chief executive officer of the tech company since 2014 and has played an integral role in pushing the company to what it is now a trillion-dollar corporation.
Nadella saw the billion-dollar acquisition of LinkedIn, ZeniMax, and Nuance Communications. Thompson, who took over as chairman from the company’s co-founder Bill Gates in 2014, will serve as a lead independent director, according to Microsoft
The appointment of Nadella as Microsoft Chairman comes after the company was subjected to intense criticisms of an unprofessional workplace and sexual harassment allegations after news broke on an affair between its co-founder Bill Gates and an employee back in 2000. Bill Gates’s representatives acknowledged the relationship which reportedly happened while he was chairman of the board.
Microsoft’s board has revealed that it launched an investigation into the matter two years ago but declined to comment on whether its board has decided to let Bill Gates go.
Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.
World Bank Declines El Salvador’s Request for Support in Bitcoin Implementation
The World Bank declined to support El Salvador in its bid to adopt Bitcoin as a mainstream currency. Environmental impacts, carbon emissions amid mining, and transparency issues were among the reasons for the refusal.
The World Bank has yet again declared its stance on Bitcoin, and according to the latest development, the global financier isn’t ready to adopt Bitcoin or any other crypto as a mainstream currency. The bank’s representative was quoted saying that even though the government had approached them on Bitcoin adoption, the bank can’t in any way help out given the transparency and environmental issues surrounding Bitcoin. The spokesperson however added that the bank was ready to work with El Salvador to try and sought out the country’s monetary issues, particularly currency transparency and monetary regulations.
Before the request to the World Bank’s team, Alejandro Delays (El Salvador’s minister of finance) stated that El Salvador had requested technical assistance from the World Bank a.k.a Banco Mundial in terms of regulation and implementation of Bitcoin, to make it a legal tender in the South American country.
Effects of the Refusal of World Bank to Support El Salvador in Its Bitcoin Move
As you can already tell, pundits and notable Bitcoiners weren’t surprised by the World Bank’s decision to decline such a noble move. However, they were neither pleased. One Bitcoiner, Anthony Pompliano, stated in a tweet that the World Bank is yet to figure a way to profit from Bitcoin. The developer of Ignite Blockchain-based game, Samson Sow, who’s also Blockstream’s CSO was clearly vexed by the news when he suggested, via a tweet, that the global financial outfit is obsolete and should be disbanded.
While El Salvador’s Bitcoin laws have been well received by Bitcoiners, they’ve also attracted criticism in equal measure. On Wednesday, one economist, Steve Hank, was quoted saying that if El Salvador adopts Bitcoin and make it a legal tender, the end result will be a collapsed economy.
Other global financial bodies, particularly the International Monetary Fund (IMF), aren’t pleased with the idea of embracing Bitcoin. An article published on Cointelegraph indicated such a move will stall the ongoing negotiations between the IMF and El Salvador regarding a $1B loan meant to boost the country. The International Monetary Fund representative added that Bitcoin’s adoption comes with consequences and has a negative impact on many spheres of a country’s macroeconomics.
Help from Other Quarters
Following the setback, some companies have rushed in to provide a soft landing. One such company is Athena Bitcoin that intends to provide ATMs across the South American country. In a tweet, Athena Bitcoin enquired from the president if 1,000 automated machines would suffice. However, the president jokingly answered back “how about 1500?”
In other news, Ronaldo Castro, the country’s Labor and Welfare minister denied the ongoing claims that his ministry was in talks about compensating employees with Bitcoin. He stated that the discussion surrounding wages was too premature.
Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.
Canaan to Execute Sale of 10,000 Bitcoin Mining Machines for Genesis Digital Assets
Together Canaan and Genesis Digital Assets will strive to deliver and ascertain ease in crypto agreements and transactions.
Canaan (NASDAQ: CAN) is one of the major computing solution organizations that deal in delivering high-performance digital communication systems. The company has recently announced that they have received an order to manufacture 10000 Bitcoin Mining Machines for Genesis Digital Assets, a leading organization dealing in Bitcoin mining and distribution. Canaan will process the sales order to manufacture 10000 Bitcoin Machines with specific range models known as A1246 and A1166 Pro. Canaan has also clarified that the order received from Genesis Digital will be delivered by the end of June 30th, 2021.
Canaan and Genesis Digital Assets Enter in Strategic Commitment
The Chairman of Canaan Nangeng Zheng had commented on how the purchase has made the organization quite ecstatic and had further elaborated on how the strategic commitment established through this purchase will continue to provide strength to the grown crypto and finance sector. The company also said that they will be primarily focusing on the crypto fluctuations and how the impact of such stark fluctuations can be tackled via delivering more comprehensively made BTC mining machines.
Mr. Abdumalik Mirakhmedov, Co-Founder and Executive Chairperson of Genesis Digital Assets commented that their organization has been seeking long-term success and progress via such commitments and will continue to do so. The company has always been inclined towards the growth and development of the organization and launching new data centers, expanding the core business operations will uphold the company’s success quotient. The sale initiated from Genesis Digital is regarded as one of the most important elements in tracking crypto trajectory in the region.
The Agreement Is Anticipated to Induce a Sharp Improvement in BTC Hash Rates
Genesis Digital Assets is one of the dominating Bitcoin mining networks that has been actively mining BTC with an average BTC hash rate of 2.1 exahash per second (eh/s) which is 1.4 exahash more than the natural Bitcoin Network Hashrate. The company has a well-established status in crypto dealings and has successfully managed over 250,000 BTC miners under their domain. With this crucial merge of interests, the company is all set to expand its networks and leading transactions to improve the existing cryptocurrency structure of the nation as a whole.
Canaan in this endeavor will be proven extremely beneficial because the organization has been the supreme provider of RISC-V architecture commercial Al chip, which will play an instrumental role in harnessing the AISC technology, to deliver high power computing solutions. Together, both organizations will strive to deliver and ascertain ease in crypto agreements and transactions and pave the way for an extreme digital finance makeover.
Juhi Mirza is an archaeological major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.
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