Bittrex, the third largest cryptocurrency exchange in the global market behind Binance and Bithumb, has temporarily paused Ethereum deposits due to the current congestion on the Ethereum blockchain network.
According to Etherscan, the Ethereum network is processing more than 1.2 million transactions on a daily basis, settling more payments than all of the cryptocurrencies and blockchain networks in the market combined, including bitcoin.
The Ethereum network has to process more transactions than other blockchain networks because it operates as the base protocol for large-scale decentralized applications. Applications like CryptoKitties and EtherDelta, that have many active users requesting multiple transactions per day, are placing a heavy burden on the Ethereum network.
"While innocuous at a glance, the project has become a problem for the Ethereum ecosystem. The cryptokitties multiply, are bought, sold, rented for breeding, in other words, involved in myriads of transactions, taking up the largest volume of Ethereum traffic (20%). This causes many transactions that had previously taken seconds to currently be either delayed to 10 minutes, or fail entirely," explained the developers of Bankex that recently introduced the first practical implementation of Buterin's second-layer solution Plasma.