As T's surge to new highs with ETH entering pricing mode, use of some complex DeFi protocols became impossible as gas rates rose to over $ 1,000
The Ethereum gas has risen again to record levels and renders many DeFi protocols for merchants virtually unusable. After increasing average transaction fees on ETH by 20% in the last 24 hours, they are now at a record $ 17.67.
Transaction fees up to $ 5,000
With many DeFi projects requiring complex smart contracts to run, some reports show that the fees associated with using these protocols now exceed $ 1,000. When that mess was exposed, Twitter user “Olive Allen” reported her estimated gasoline charges of nearly $ 5,000 to accept an offer from Rarible.
Almost 5k is the price to accept a bid on @rariblecom now !! 😂 Is it because of ETH high gas fees⛽️ or some type of bug 🐜? 🤔
Thoughts? pic.twitter.com/tYoV1ilB85– Olive Allen (@IamOliveAllen) February 3, 2021
However, this is not the only case with such high transaction fees. A single large transaction on the Synthetix network was valued at over $ 1,100, while even simple exchanges with Uniswap and SushiSwap cost between $ 40 and $ 75.
WTF ??? pic.twitter.com/0luArQfeaK
– Ran Neuner (@cryptomanran) February 3, 2021
The projects explore other options, but is it worth it?
Ethereum you are not alone when it comes to increasing transaction fees. The average transaction of Bitcoin it currently costs more than $ 14. Despite the high costs of using the BTC and ETH networks, traders seem extremely bullish on both cryptocurrencies. Ether recently hit a new all-time high of $ 1,700.
The popularity of Ether underscores the skyrocketing fees and points to the usefulness of second-layer scaling solutions for Ethereum 2.0. While Synthentix is currently trying to lower gas prices by gradually migrating to optimistic packages, other platforms are testing competing layer two solutions, such as xDai or layer one networks with better scalability, such as Polkadot.
However, DeFi users and projects may not have to wait until Ethereum 2.0 to experience a reduction in gas rates. Developer Tim Beiko made significant progress on the EIP-1559 testnet in February. EIP-1559 is a mechanism that introduces a burnout mechanism on the ETH network to reduce rate volatility.
