The ethereum network is facing unprecedented demand, but it is now used for much more than “merely” transferring ETH tokens. A large part of that demand is due to the activity of smart contracts.
Smart Contracts Take Over Network Usage
The most active smart contract on the ethereum network as of September 15, 2019, is that of a growing ethereum-based Ponzi scheme. The contract took the lead in the past few days, as social media users noted. The scheme is gathering speed, with more users sending in ETH for a short opportunity window for high returns.
Does anyone know about this contract 0x01eacc3ae59ee7fbbc191d63e8e1ccfdac11628c ? It is the second largest consumer of gas on Ethereum right now, Eth deposits grows by 10k$ in about 15m, the code (https://t.co/viv5nBBYz3) has a comment referring to https://t.co/eMJrtTLFNp and
— Louis Guthmann (@GuthL) September 5, 2019
The Ponzi scheme contract burned around 27% of all gas as of September 15.
The second-largest contract, “Tether USD”, issues and transfers USDT coins on the Ethereum network, reaching supply of 1.95 billion USDT.
Supporting this thesis, I took a look at the ratio of transactions sending $ETH vs all others, showing consistent upwards trend indicating usage of the #Ethereum network other than “just” transferring ETH (~60%).@cburniske @sassal0x
data source: @glassnode https://t.co/qxVws0y8NT pic.twitter.com/lQQQW3MSlC
— Rafael Schultze-Kraft (@n3ocortex) September 15, 2019
The Tether contract habitually burns up around 30% of all gas on the ethereum network, taking up more computational power than even the most active distributed apps. A usage rate of more than 30% is very rare and usually means the network is overloaded,