In the cryptocurrency bull market, it is vital to always pay attention to its impact on decentralized applications.
As the price of cryptocurrency continues to rise strongly, the hope of the blockchain community for 2021 seems to have been realized.
But at the same time, more consideration needs to be given to dapp developers and users.
As with any large-scale cryptocurrency price fluctuations, there has been a surge in activity on the Ethereum blockchain, driving up transaction costs.
Of course, this will not affect the value of millions of dollars in tokens for whale users in and out of complex DeFi positions.
But for other ordinary users, forging NFTs and participating in dapp games on the Ethereum blockchain or just conducting token transactions worth $100, Ethereum’s transaction fees no longer have the advantage in the blockchain market.
Behind the price increase
To be honest, this is nothing new. Since May 2020, Ethereum's fuel price has been at a high level, especially after August.
From the perspective of the current price of ETH and the success of DeFi dapps, this means that we are unlikely to see fuel costs as low as before.
In fact, few people would like to see the recurrence of low fuel prices as in 2019, because it also means that the price of ETH tokens has returned to the price of 2019.
However, with more and more excellent newly launched blockchains, the high value of ETH and low handling fees have become available at the same time. Users can use blockchains with second-level transaction time and low fees and trust DeFi dapps. ERC20 tokens are traded on.
In this case, the current bull market will accelerate experiments conducted by companies such as Compound, Aave, and Synthetix to use these new solutions (whether it is a brand new blockchain or a solution based on layer 2 Ethereum) to ensure They will occupy a leading position in the future market.
And upstarts like Neutrino (Waves), PancakeSwap (Binance Smart Chain) and Serum (Solana) are also preparing to follow suit.
No matter from which point of view, 2021 will be a more impressive year for dapps than 2020.