An Ethereum-based project has been forced to stop development due to soaring gas prices, as the cost of transactions on the blockchain continues to push new heights.
The official Twitter account of the Token project on the social media Unite Advertise On February 10, the project was no longer under development, adding that the original idea of the project had become useless due to the recent hike in gas prices. The average cost of using Ethereum has increased 35,600% since January 2020:
“Unfortunately we are no longer actively developing Unite. Gas prices mean that the original idea for Unite is not feasible, and after several months of work and many conversations, we have decided not to build a social token platform on L2. Thank you for the support!”
Ethereum’s transaction costs hit new record highs of $ 25.10 on Feb.5, before easing to $ 16.40 two days later. But the momentum that saw the number of Ether (ETH) transactions more than triple during 2020 (from 418,000 to 1.26 million) has continued over the past 48 hours, with average transaction costs surpassing $ 24 again, according to data from Bitinfocharts. com.
Unite aims to allow social media users on sites like Twitter and Discord to distribute Ethereum ERC-20 tokens to their audience and community. The project stated that it would neglect building on a Layer 2 solution, citing projects built on Ethereum side chains that often use radically different transaction mechanisms and fee pricing mechanisms.
While some have benefited from Ethereum’s increasing popularity, the need for a blockchain ecosystem not to collapse under the weight of its own success has not gone unnoticed by developers. Ethereum 2.0, the next major update in Ethereum’s evolution, will seek to expand the blockchain into many orders of magnitude above its current capacity, while the pending improvement proposal aims to restructure how ETH gas prices are calculated.