Remember our article Can DeFi buy You a Lamborghini? Now here’s the deal, I believe Ethereum mining is the easiest way of buying a Lamborghini right now. The Lamborghini dealership might already be out of Lambos due to Ethereum miners demand lol…
What is happening to Ethereum gas fees? I miss those days when Ethereum gas fees were below $0.2. Nowadays you can pay as high as $30 for a transaction on the Ethereum network. Wait did I say $30?
The recently concluded bugs plagued presale of MYX saw people being charged gas fees as high as 3.9854 Ethereum (~$1574). Ethereum mining is the new Bitconnect.
Uniswap trading fees now a nightmare
Trading on Uniswap also has become a nightmare for Cryptocurrency traders due to the high transaction fees over there. Yesterday I was charged $10 for a transaction, that is 4500 Nigerian Naira just for a transaction. Today for that same trade the quote for the fee was $24.
The past week for me trading on Uniswap I paid an average fee of $5 for each trade and I was closing a minimum of five trades in a day. Cumulatively that’s about $25 (11,000 Naira) daily.
Here’s a chart from https://etherscan.io/gastracker showing the top gas guzzers.
Uniswap V2 in the last 24 hours has swallowed a record 17.36% of total gas fees on the Ethereum network amounting to 3,774.06 Eth ($1,455,467.01). This is insane if you would ask me. Ethereum miners are making a kill.
Looking further down the chart you would notice it is occupied by DEXes and DeFi protocols. Yam.Finance is making a real kill here after making some people that bought high yesterday eat Yam today, hope it was pounded Yam with white soup hahaha…
I think in this bull run Ethereum miners will be the real moon boys that would buy Lamborghinis before the crypto traders. Unfortunately crypto traders may end up settling for Nissan Micra hahaha…
Why are Ethereum gas fees high?
After carrying out some research, I believe the main reason for the high Ethereum gas fees is due to Decentralized Finance (DeFi). In the past high Ethereum gas fees were due to the clogging of the Ethereum network by the crypto kitties game.
In this recent dispensation DeFi is the reason for the high gas fees. Ethereum miners realized DeFi protocols and decentralized exchanges were making bank so they decided to join the fray by clogging up the Ethereum network and getting their own share of the cake through high gas fees.
Is Decentralized Finance (DeFi) supposed to be expensive?
My question remains if finance is to go decentralized, why is Decentralized Finance (DeFi) more expensive than Centralized Finance (CeFi) judging by the high transaction fees?
It’s time for Ethereum 2.0 someone tell Vitalik Buterin
The much talked about Ethereum 2.0 has generated a lot of interests. The main reason for Ethereum 2.0 is the change of consensus mechanism from Proof-Of-Work to Proof-Of-Stake.
This means the Ethereum network and transactions will no longer be secured and approved by miners. In other words new Ethereum coins will not be mined anymore by miners but new Ethereum coins will only be gotten through a process called staking.
In order to be part of securing the Ethereum network you would need to stake 22 Ethereum and as a result you will be able to:
- Approve & sign transactions
- Get Ethereum coins in return as rewards.
It’s time for other Blockchain to arise and shine
Ethereum 2.0 would be great for those within the Ethereum ecosystem but I believe the issue of high gas fees should be a catalyst for other Blockchains to come up with competitive features.
Tron is a top competitor of Ethereum. Transactions on the Tron network are super cheap and fast like a Lamborghini. Outside the transaction speed and cheap fees, everything you can do on the Ethereum Blockchain you can also do same within the Tron Blockchain.
During the deflationary tokens season developers were able to develop deflationary tokens on the Tron Blockchain. Deflationary tokens like Frags and void.
The much talked about Decentralized Finance (DeFi) protocols can also be deployed on the Tron network. I believe this is time for developers to move beyond the Ethereum Blockchain and explore other Blockchains with better scalability.