Ethereum has been rising today, with the currency up $300 since yesterday in a V shaped recovery, recouping all South Korean induced losses to now seemingly head towards $1,400.
Its trading volumes are however down to $5 billion from $10 billion with Bithumb leading by a slight margin, followed by the bitcoin and the dollar pair.
With the fall in volumes potentially because it’s a weekend, although it could also be in part due to Kraken as the exchange was offline for three days.
Ethereum turned bullish at the beginning of the year after an announcement Casper’s Proof of Stake had entered testnet, with its live launch now expected in the next few months.
The currency has doubled since then and seems to be leading the entire show, taking over from bitcoin, although Bitcoin Cash appears to be moving in lockstep with eth too.
The network now handles near all time highs in transactions, more than even centralized crypto platforms, suggesting growing use and network effects.
And although its fees briefly rose to around 50 cent, they are now back down to around 10 cent, but the reason for the fall in fees is not clear.
That’s because miners have not really increased the gas limit, although eth’s blocksize is somehow rising, suggesting miners are making fuller use of blocks.
It may also be that usage has fallen slightly from 1.3 million transactions a day to 1.1 million, but despite handling some 4x the number of bitcoin transactions, ethereum is still managing to process them at 10 cent, with little, if any real congestion, on the network.
Which is one of the reasons why the platform has attracted much attention, on top of its smart contracts. Ethereum is employing all approaches to scale its network, both on-chain and off-chain through bundling transactions on second layers and bundling nodes through sharding.
That should, perhaps as early as next year, give it sufficient capacity to handle Cryptokitties and other likewise dapps without any problems as work towards Visa levels capacity continues.