Ethereum Scaling problem persists, Games badly hit

Daily active unique wallets for Ethereum-based top 5 games fell from 7,355 to a mere 946 by May.

By · Jul 17, 2020 . 8min read

Photo by Morning Brew on Unsplash


Ethereum network continues to experience scaling problem as gas fees skyrocket. Data now shows that on-chain games are the most badly hit and have seen a drastic reduction in activities.

A quick look at ETH’s gas station shows Tether’s USDT/ETH leads the pack with gas fees on the network. It shows an average of $2.87 million has spent on fees transferring the stablecoins across the network.

Source: https://ethgasstation.info/


Tether is a stablecoin minted across four chains presently. Since its introduction on the Ethereum network in 2017, more than 60% of USDT in circulation are ERC20 tokens. As at press time, Tether’s smart contract on Ethereum network holds 6,037,847,550 USDT tokens. Stablecoins on the overall have seen an explosion in activities in 2020.

Surprisingly, SmartWay Forsage contract address ranks second on list of contracts with gas consumption within the last 30 days.

As this chart shows, blocks which are 80% and above full increased from 56% in January to 95% by July. It also reveals that blocks that are less than 20% full have also dropped from 19% in January to 4%.

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Source: https://twitter.com/shutterbugsid


This is particularly severe for gaming DApps on the ethereum network which depends on on-chain transactions confirmation to thrive. While DeFi DApps like Compound continues to see increased activities on Ethereum, gaming DApps have been badly beaten.

Since Ethereum is still a Proof-of-Work blockchain, Ethereum requires users to pay a small amount of the ETH as transactions fees to save their transactions into a block. Miners receive these fees and may sometime be insignificant in amount especially when large transaction amounts are being moved, let’s say like $10 million.

Gaming dapps activities continue to fall

But for gamers who carry out microtransactions and depends on on-chain confirmation of these transactions, this can be particularly excruciating for them.

Source: Dappradar

According to this report by Dappradar, daily active unique wallets for Ethereum-based top 5 games fell from 7,355 to a mere 946 by May. This represents an 87% drop in the activity, which is a huge fall when you compare with DeFi’s recent boom.

Possible Layer 2 Solutions for Ethereum’s Scaling problem

With this horrific drop in on-chain gaming apps activities due to Ethereum’s scaling problem comes possible layer 2 solutions.

Matic, which provides solutions for multiple players in the DApp space, such as payment networks, decentralized exchanges and even gaming DApps easily comes to mind. Matic uses a decentralized network of stakers who deposit Matic to act as checkpoints between any two blockchains. This method allows for cheaper, faster and a higher volume of transactions per second otherwise called throughput.

Reddit, a social network with more than 430 million monthly active users also announced its partnership with Ethereum with respect to scaling it. Specifically, it looks to find a solution that will support hundreds of thousands of Community Points users. Reddit users earn Community Points by garnering “upvotes” on posts which they can use to purchase specialized GIFs or emojis.

Still on possible Ethereum scaling solutions, Open finance protocol Synthetix and research group Optimism teamed up to launch Optimistic Rollup. This was another step towards developing a full-fledged Ethereum Layer-2 scaling solution among many other existing projects racing to solve Ethereum’s scaling problem. 

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