MASSIVE SPIKE ON BITCOIN AND ETHEREUM GAS FEE

Bitcoin and Ethereum are both seeing fees explode right now essentially being broken for the average user as meme coin hysteria continues to go out of control. The Pepe coin was apparently just the beginning of the Mania and even Bitcoin is now getting in on the in Sandy. The Frog coin (Pepe) has reached as high as 39 on the total marketcap charts over the weekend, hitting a total market cap value of around 1.5 billion dollars. It went from zero to 1.5 billion dollars in a month. A lot of people made a lot of money not me, I don't do the meme coin gambling thing. A lot of people made money and I love seeing stories like this one just some normal guy who made big money by gambling on Meme coins put in 0.1 each and got a truckload of money back.

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We celebrate the winners who sold the top on Pepe, keep in mind that someone bought the top on Pepe and has basically now joined the community of bag holders. Also, you kind of need to feel a little bit sad for all of those hard-working teams out there trying to make use of full Financial applications for people to use, make people's lives better, or make cool products and just getting slapped by a completely useless Altcoin called Pepe which pumped just because it had a frog picture.

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What's happened on Pepe has led to a massive spike in on-chain fees for Ethereum. Ethereum Uniswap fees were like $78, people posted a screenshot of it being much higher at certain points. Ethereum is once again unusable by normal humans, only Rich crypto natives can afford to pay that kind of money. For perspective, $78 is more than most humans on this planet make on any given day. Ethereum is not ready for the next bull run with those kinds of fees. Remember, Ethereum has no plans to make fees cheaper for at least a year. The next major upgrade coming for Ethereum is called Proto dank Sharding, however, this will lower fees dramatically not for the mainchain but for layer twos like Arbitrum.

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At least Ethereum has become solidly deflationary, sitting at minus -2.5% a year right now. Now is the time for layer 2 like Arbitrum and Optimism to shine. It's also a big opportunity for competitor chains like Slaughter to have a good comeback, Avalanche to stake more market share, and Cardano to make its case. They need to step up to the plate and make that case and capture that market share while Ethereum struggles because the soonest we can likely expect Ethereum main chain fees to fall is sometime in 2024. Network sharding will likely begin slowly with just a few shards. So they'll bring fees down dramatically but not as dramatically as we would like to see.

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Bitcoin fees have also gone insane hitting 9.60% which is about a 300 increase in just a month. The Bitcoin mempool which is where all unfinished transactions go to, just hit 479,000 transactions stuck and waiting to clear. Why big question here is, Why is it happening? It is because tokens are happening on Bitcoin and they're exploding. It started as nfts but now we're seeing meme coins starting to pop up on the Bitcoin mainchain. The race for Bitcoin layer 2 scaling just entered a critical phase here I think as well because we need to see Bitcoin scale Layer Two. Many think we're still deep in the bear Market, I think we are very likely at the very bottom of a new bull market cycle which still fear is very rough. Bitcoin and Ethereum usage and fees right now are exploding and it's a good thing but it's also a bad thing because the fees have gone insane.