Vitalik Buterin, the co-founder of the Ethereum cryptocurrency, warned earlier this month that the platform’s capacity is used up 90%. Snags are likely to surface with the launch of any new Ethereum based tokens, Bloomberg reported.
One of the reasons lies in the past ICO boom when Ethereum, a digital ledger touted as a better version of Bitcoin, became a launch pad for a huge variety of “junk” cryptocurrencies. Most of those turned out to be just scams but took up space of the network anyway. The platform was getting clogged up.
Another threat has come from a newly introduced cryptocurrency called Tether. It’s gaining popularity, and its market capitalization recently topped $4bn. Tether is 40% based on Ethereum. Tether is reported to have been used in 40% and 80% of all transactions on two of the world’s top cryptoexchanges, Binance and Huobi, respectively.