Transaction Fees Rise By 100 Percent, Will Cardano Have Problems?

Cardano is predicted to be in trouble as transaction fees go up 100 percent. (Unsplash)

JAKARTA – Cardano transaction fees have increased very significantly, namely 100 percent. According to data released by crypto research firm Messari, this increase was the strongest since August and May. However, the increase this time had a different factor.

This increase is a result of the increase in network usage last August and May. But other than that, the increase is due to the number of network use cases. The difference between rising fees during high trading volumes and increasing decentralized on-chain solutions is quite drastic.

During periods of high volatility, users move their funds more actively. It includes levies on funds, trade, investment, and other operations. However, every time a new decentralized application or solution appears on the network, the usage is still higher.

Could It Be a Problem?

Paying around IDR 7,100 per Cardanoi transaction doesn't seem like a big deal. However, with further development, the addition of new solutions, and relatively fast price growth, traders are expected to face the same problem when the NFT craze broke out on the Ethereum network last year.

To note, in 2021 Ethereum transactions could reach 100 US dollars or IDR 1.4 million just for simple transactions. In fact, for printing it will be more than that figure. at some point, the network will face a huge outflow of funds and users. That's because, users will not want to pay more than IDR 700 thousand for transactions that are only IDR 140 thousand.

In conclusion, if Cardano's total market capitalization reaches the level of Ethereum, even Bitcoin, the price of the ADA token will most likely reach around IDR 143,000 according to financial calculations. Meanwhile, the transaction fee can be halved, around IDR 71 thousand at the current level of usage.