Billionaire Avalanche backer Su Zhu stirs up controversy after Ethereum criticism


Crypto billionaire Su Zhu took to Twitter yesterday to criticize Ethereum, the world’s second-largest blockchain by market cap, setting off controversy in crypto circles and its appeal for investors and developers alike. 

“Yes, I have abandoned Ethereum despite supporting it in the past,” he shared. The 34-year-old added that the high transaction gas of Ethereum is hindering its mass adoption and is making it difficult for developers to deploy smart contracts. 

Ethereum fee hike 

According to BitInfoCharts, the average cost of sending a transaction over the Ethereum network has risen considerably over the last few years, soaring up to 1,360% since the beginning of June 2021. 

The gas fees paid each time a transaction is initiated are pocketed by crypto miners, who are responsible for processing and confirming the transactions sent over the network. 

High transaction costs are largely driven by increased demand for processing transactions over Ethereum, which directly contributes to the soaring gas fees prices. 

Zhu condemns the Ethereum fee hike

Zhu has accused early adopters of possessing a “rentier mentality” and has condemned the constant surge recorded in the transaction fees charged on the Ethereum network.

He also stated how the gradual rise in Ethereum’s prices has been driving away investors and has hampered its mass adoption. 

“Users are livid that they’re promised a vision of the future, then told that they have to pay $100 to $1,000 per transaction to enjoy it. This is dystopian and should be treated as such. Instead, it is celebrated because of the fee burn,” he further added.

As a result of the Ethereum fee spike, cheaper blockchain networks such as Solana, Avalanche, and Ronin have benefited greatly by attracting new investors and also by accommodating professionals who are looking forward to adopting networks that have high low transaction fees and a track record that boasts faster processing of crypto transactions. 

However, the crypto billionaire had, later on, softened his stance on Ethereum and lauded the scalability of its L2 integration. It is to be noted that Su Zhu is an active Avalanche proponent, and has tweeted multiple times in support of the network. Three Arrows Capital


Like what you see? Subscribe for updates.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button