Cryptocurrency Q&A
Why is ERC20 more expensive?
Why is ERC20 more expensive?
charlotte_anderson_explorer
Mon May 13 2024
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6 answers
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I've noticed that ERC20 tokens often command a higher price compared to other cryptocurrencies. Could you please explain the reasons behind this? It seems to be a prevalent trend in the market, and I'm curious as to what factors contribute to its higher valuation. Is it due to its widespread adoption, the utility it provides, or perhaps something else entirely? As a professional in this field, I'm sure you have insights that can shed light on this mystery. I'm eager to hear your thoughts.
6 answers
Riccardo
Wed May 15 2024
The network fee for transactions involving ERC-20 tokens like USDT or USDC on the Ethereum blockchain tend to be higher.
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Sofia
Wed May 15 2024
Similarly, executing actions within applications built on Ethereum, such as decentralized exchanges or NFT marketplaces, carry steeper costs.
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CryptoVisionary
Wed May 15 2024
This is primarily because these transactions involve smart contracts.
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CharmedSun
Tue May 14 2024
Smart contracts are self-executing programs that run on the blockchain and facilitate various functions.
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Raffaele
Tue May 14 2024
However, they also require additional computational resources and verifications, leading to higher transaction fees.
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