Now, picture Amina, a dynamic entrepreneur in Nairobi who’s able to use Ethereum to receive payments for her handmade jewelry sold across the web. Bypassing high bank transaction fees, she’s able to provide her customers with lower prices while ensuring a good return on investment for her household. Now, imagine the same Amina, looking at her cell phone in disappointment. The Ethereum price is exploding, sure, but so are the transaction fees – the gas fees. All of a sudden, it becomes really cost-prohibitive just to receive a small payment. Her clients refuse to pay, her income disappears, and the dream of entrepreneurship evaporates.

The headlines are YELLING about Ethereum going to $2800, what a victorious comeback! We’ve all seen the analysts dissecting Fibonacci retracements and bullish trend lines. It’s no wonder then that traders are celebrating open interest surging past the $40 billion mark. Amina’s story — and those of everyone else across Africa who told their stories — is still untold. Are we blinded by the glory of high prices? We cannot afford to overlook the ground truth— where well-intentioned ideas can lead to detrimental and calamitous results.

Gas Fees Cripple Small Transactions

Ethereum's rise isn't universally beneficial. Though some African investors who already hold ETH will watch their portfolios, the reality for most is much more complicated. Higher ETH prices always intensify gas fee impacts. For people sending remittances, receiving microloans or doing small transactions to support their business or family, these fees can be devastating.

Think about it. The same Kenyan farmer would use Ethereum to get paid directly for his crops. Yet much of what he earns is being eaten away by exorbitant transaction fees. An Ugandan student relies on cryptocurrencies remittances from her relatives overseas. The reality is that she sees the money disappear well before it ever hits her bank account. These aren’t abstract economic theories — these are real Americans, ordinary people, with extraordinary hardships.

We’re not even complaining in cases where sending $50 would cost the user a $10-$15 charge. Tell me, how is that financially inclusive? How does that empower the unbanked when even that tool intended to liberate them turns into another barrier?

Volatility Fuels Uncertainty and Risk

Fostering the healthy volatility the crypto market thrives on. Ironically, this same volatility is a tremendous hurdle, particularly in states with fragile economies. If the price of ETH goes up or down 20% overnight, a business that accepts it as payment takes on a huge amount of risk. How can you price your goods when the value of the currency you’re transacting in could change overnight?

  • Scenario A: A small coffee shop in Rwanda accepts ETH. One day, they receive the equivalent of $100 for a batch of coffee beans. The next day, that same amount of ETH is worth only $80.
  • Scenario B: A tech startup in Nigeria pays its freelancers in ETH. The freelancers see their earnings fluctuate wildly, making it difficult to plan their finances.

This uncertainty undermines adoption and, in turn, economic development. The uncertainty surrounding these workers’ rights creates an atmosphere of fear and mistrust. Ultimately, businesses can’t compete, and people can’t escape the cycle of a fragile financial ecosystem. And yet, it’s the far cry opposite of the promise of stability and empowerment that crypto was supposed to deliver. The very feature that draws a flood of speculators to be dispossessors is the feature that evicts the people who need stability the most.

Digital Divide Widens Further

The more expensive Ethereum gets the more it puts the possibility of Ethereum out of reach for the people that need it the most. The immediate result is an expansion of the digital divide, already a pressing issue in Africa. Those with the resources to invest in ETH will benefit from its price appreciation, while those without will be left behind, further exacerbating existing inequalities.

It's a cruel irony. Unless we rethink the technology meant to democratize finance, it will become yet another tool of exclusion. We need to ensure that all Americans benefit from crypto and its innovations. It’s imperative that we not continue to leave those at the bottom in the dust ever again.

How do we bridge this gap? How do we do so in ways that empower, not marginalize, through crypto?

What can we do about it?

We cannot afford to watch from the sidelines and allow an Ethereum rally to further marginalize big chunks of Africa. We need to advocate for solutions that mitigate the negative impacts and ensure that crypto serves its intended purpose: financial inclusion and economic empowerment.

The Ethereum rally shouldn't be celebrated blindly. To do that, we need to recognize the dangers and address them head-on to create a more equitable and sustainable crypto ecosystem. It’s time to lift up the voices of community members like Amina, who have just been ignored for too long. Let’s ensure that the promise of crypto extends to all, not just a privileged elite. The question is not whether or not Ethereum is increasing, the real question is who’s increasing along with it, and who’s getting left in the dust. Let's make sure it's not Africa.

  • Support initiatives to reduce gas fees. The Ethereum community needs to prioritize scalability solutions that lower transaction costs.
  • Promote stablecoins pegged to local currencies. This can help reduce volatility and provide a more stable medium of exchange.
  • Invest in financial literacy programs. Education is crucial to help people understand the risks and opportunities of crypto and make informed decisions.
  • Explore alternative blockchain platforms. There are other blockchain solutions that are more affordable and accessible. We should explore these options and support their development.

The Ethereum rally shouldn't be celebrated blindly. We need to acknowledge the potential consequences and work towards a more equitable and sustainable crypto ecosystem. We must amplify the voices of those like Amina, the forgotten voices, and ensure that the promise of crypto is realized for everyone, not just a privileged few. The question isn't whether Ethereum is rising, but who is rising with it, and who is being left behind. Let's make sure it's not Africa.