@edithjuliet

Ethereum is the most notable example of a chain where high transaction fees haven’t deterred consistent user activity. Despite gas spikes, developers and high-value users continue to transact due to Ethereum’s security, liquidity depth, and established ecosystem. Similarly, Bitcoin’s network, while costly for transactions, still sustains user growth because of its role as a store of value and settlement layer. In some cases, high fees even signal strong demand and network security, reinforcing legitimacy. Users often migrate smaller activities to Layer 2s or sidechains, but retain Ethereum or Bitcoin for core financial operations. This pattern highlights the “network effect moat”: once a chain becomes indispensable, high fees don’t necessarily reduce growth. Instead, they encourage scaling innovations, like rollups or sidechains, while preserving the main chain for high-value settlements. It’s a case of demand outweighing cost.

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