Ethereum, the second major cryptocurrency in the market currently is moving towards new highs as its price goes through the roof. In another news, along with Ethereum’s price hike, DeFi’s gas fees are skyrocketing, stirring concerns in investors.
Investors note that the extremely high gas fees in decentralized finance exchanges are becoming a concern for casual investors. The prices are about to cross record highs. This is making decentralized finance exchanges unusable for several investors for whom it does not make sense to invest such high fees for making single swaps or transactions.
This rise in the gas fees is also indirectly affecting Ethereum’s transaction fees. The current transaction fees of Ethereum stands at $17.67. This means that it has made a 20% hike in the past 24 hours.
DeFi Gas Fees Pumping Ethereum Average Price
Several DeFi projects currently require investors to engage in smart contracts. To execute such contracts, investors need to pay report fees, according to the protocols. These complicated protocols cost an individual investor to pay upto $1000.
These recent fees hikes have stirred several concerning Tweets from investors. Olive Allen, in one such tweet writes that a single Rarible bid cost him “5k”. Investors are worried whether such lofty fees are because of gas fees or a bug.
Several analysts are of the opinion that decentralized exchanges are marking such high transaction fees since the DeFi platform is going through several upgrades recently.
A single transaction on Synthetix currently costs over $1,100. Even simple swaps on SushiSwap and Uniswap cost around $75 to $40. Following such terrible price hikes, several sites are warning investors to beware before investing.
Podcast host of ConsensusRough ‘Checkmate’, mentioned that such high gas fees are pumping the price of Ethereum in the market. However, Ethereum is not suffering from this alone, Bitcoin is also facing a similar congestion. The average fees of Bitcoin currently stand at $14.