The popular Lark Davis crypto influencer calls Ethereum co-founder Vitalik Buterin for Ethereum 2.0 to eventually roll out as gas costs on the Ethereum smart contract network skyrocket.
In a new video, Davis informs his 218,000 users that while he stays positive in Ethereum (ETH), the transaction costs on its smart contract network are becoming “unwise”. As a result, traders are rapidly shifting to alternative decentralized financial networks (DeFi), such as the rising star Binance Smart Chain (BSC).
Davis encourages Ethereum chief Buterin to correct the problem by releasing Ethereum 2.0, a long-awaited workaround for the scaling team.
“You do have to keep it real right now. The fees for Ethereum are crazy, crazy high which obviously doesn’t matter for the big money guys who are gobbling up Ethereum and waiting for it to go up to five digits. they’re looking at the investment thesis here. But we’re now at the point where ETH 1.0 – oh we need ETH 2.0 so soon, come on Vitalik [Buterin], get it going, man – ETH 1.0, most regular users are priced out of using the majority of applications on Ethereum.”
As Davis stated, it is crucial to face reality, for example, the transaction case on Uniswap, which unbelievably cost $50 on average these days. The biggest issue is to pay a few hundred dollars for that, which seems totally insane.
The analyst also points out Ethereum has become a chain just for the rich, and the fees will possibly cause the boom in popularity of the BNB native token of Binance Smart Chain and the decentralized exchange PancakeSwap (CAKE), which is based on BSC.
According to Davis, Ethereum is becoming a wealthy investor chain at this stage. There is deep liquidity already in Uniswap and we have new tokens before anyone else and all that, but right now we see unsurprising consumers switching to other chains. In applications such as PancakeSwap, Binance Smart Chain has been completely explosive, and in reality, has begun to catch up with Uniswap in terms of overall locked value. The tokens Binance burst. DeFi ventures focused on Binance flourished in the last week when people were hunting for greener pastures.
As for the advancement of Buterin towards a correction of the high costs, the beacon chain of ETH 2.0 was launched back in December, but the requisite scaling solutions for the easy and cheap transaction costs are still missing. Buterin previously mentioned while the team plans to deploy ETH 2.0, phase 0, phase I, and phase 2, the transaction rates and the costs of roll-ups in phase 1 can be improved and reduced.
Phase 1 is planned to commence in August or September of this year, Buterin says.
“The road map has an odd accidental artifact: sharded implementations need step 2 themselves. But sharded rollups need only stage 1 because rollups only use the chain for records, not computation purposes. We will soon have all the requisite resources for 6400x output!
This is not a roll-up more than a sharding, it is a “roll-ups” that are on top of sharding. Nevertheless, roll-ups already come or are arriving soon, even before sharding. So today’s go on a rollup! ”
Though a solution is not that far off, Davis claims that traders will continue to “vote their feet” with cost-effective alternate strategies until ETH 2.0 is deployed.
To sum up, the investor outlines that the message from investors is very straightforward. People choose to use DeFi, but don’t care to spend $50 to swap coins or to get cash for a few hundred bucks. It’s not what they prefer to and they have the right not to want to pay these rates.
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