The Ethereum network’s Gas fees are again at record levels. Consequently, many decentralized finance protocols became unavailable for individual investors.
Average Ethereum transaction fees were a record $ 17.67 at the time of the news release, after seeing a roughly 20 percent increase in the past 24 hours. As reported by Cointelegraph, transaction fees soared as the Ether price broke an all-time record.
Many DeFi projects that require execution of complex smart contracts face transaction fees in excess of $ 1,000. In the message shared by Twitter user “Olive Allen”, it was stated that an estimated gas fee of approximately $ 5,000 was encountered in the Rarible transaction.
— Olive Allen (@IamOliveAllen) February 3, 2021
Even users of decentralized exchanges Uniswap and SushiSwap face transaction fees between $ 40 and $ 75 for simple transactions.
Tried a $75 swap on sushi earlier. Gas fees were $74 on sushi swap and $37 on uniswap. Zero logical sense to even swap anything with fees like that.
— Kole Pfeiffer (@6pointd) February 4, 2021
Speaking about high fees, ConsensusRough podcast host “Checkmate” warned DeFi users to consider the costs associated with realizing smart contracts before investing.
Think very hard about whether you will be able to unwind your defi positions when the time comes to sell and gas fees are exponential.
Worth considering this risk because inability to exit is increasingly looking to be a reality. https://t.co/m9d09pUe0a
— _Checkmate ⚡checkonchain.com (@_Checkmatey_) February 3, 2021
Alongside the Ethereum network, Bitcoin average fees have now exceeded $ 14.