For Customers Log in
Contact Us

Network Congestion Meaning

Network congestion occurs when the demand for block space exceeds the supply. A blockchain has a limited capacity-it can only process a certain number of transactions per second (TPS).

When too many users try to send transactions simultaneously (e.g., during a popular NFT mint or a market crash), the "Mempool" fills up. The immediate result of congestion is a spike in Transaction Fees.

Since miners prioritize transactions that pay the most, users must engage in a "Bidding War" to get their transaction included in the next block. Those who pay standard fees may see their transactions stuck in "Pending" status for hours.

Congestion is the primary driver behind the "Scaling Wars." It highlights the limitations of monolithic blockchains like Ethereum and Bitcoin. It has spurred the development of "Layer 2" solutions and "Sharding" technologies designed to increase the total throughput of the network so that congestion becomes a thing of the past, even with millions of active users.

← Back to Glossary

Explore our services
Providing liquidity in the cryptocurrency market?
Authorize on our platform and do it smarter with FM Pulse.
pic

FM Marketplace

A reliable and high-performance crypto liquidity marketplace for institutions and businesses.

Learn more
pic

FM White Label

Launch your fully branded B2B crypto trading platform in under one week.

Learn more
pic

FM Liquidity Match

Crypto OTC-as-a-Service infrastructure for enhanced monetization and trade control.

Learn more

Scale your business, leave the hard work of your trading needs to us

Reduce your integration costs and operational risk across multiple access points with our platform

Get started