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In the last few months of 2020, the DeFi bubble seems to be shrinking, and the handling fee and confirmation time have fallen to a low level.
Josh Olszewicz told Cointelegraph: “ETH fees are falling, which shows that DeFi’s enthusiasm has weakened.”
He also said: “As the DeFi fever gradually subsides, the BTC mining difficulty value is reduced by 16%.” According to Olszewicz, Bitcoin’s network behavior has nothing to do with the decline in Ethereum transaction fees. He explained: “It just happens to be relevant.”
Bitcoin’s computing power has recently declined, indicating that the mining power of the network has decreased. In the past few days, the Bitcoin blockchain has experienced high levels of congestion, resulting in longer confirmation times, and many transactions have still not been confirmed. The network completed a huge difficulty adjustment on November 3. Olszewicz believes that the decrease in computing power is more likely to be a catalyst for high costs and network congestion than adjustments to the difficulty value.
Olszewicz said: “I’m not sure why Bitcoin transaction fees are so high.” He explained: “So far, the fees should have been’consumed’ from high congestion, so the reason is not completely determined, but the total daily fee Increasing.” “There may be a hysteresis effect in the network.”
Bitcoin continues to attract investors’ attention because it is challenging the 2019 highs and is likely to break through, while mainstream companies’ discussions on BTC adoption continue.