Japanese cryptocurrency exchange Liquid has temporarily halted the altcoin withdrawals while Ether (ETH) reached all-time highs.
According to an announcement made on Feb. 4th, Liquid has stopped withdrawals for ETH and some ERC-20 tokens due to the large increase in transaction costs or gas fees. The stock market made the following statement:
“When transaction fees return to normal levels, service will continue. “All other cryptocurrencies are working normally,” he said.
New Record in Transaction Fees
The ETH price has traded today to a record high of over $ 1,600, with an increase of nearly 20 percent over the past seven days. The rising price has steadily increased transaction costs to new record levels.
According to data from YCharts, transaction fees reached an average of $ 17.5 per transaction on February 3. Today, however, the average Ethereum transaction fee exceeded $ 20 for the first time.
As previously reported, transaction fees began to see significant growth in early January 2021, when Ethereum broke its previous record of over $ 1,400.
The recent increase in transaction fees has had a huge impact on some decentralized finance projects, with some DeFi transaction fees reaching over $ 1,000. Fees at Uniswap and SushiSwap rose to abnormal levels between $ 40 and $ 75. DeFi users looking for lower fees have reportedly turned to Ethereum alternatives like Flamingo.
Kain Warwick, founder of the Ethereum-based synthetic asset platform Synthetix, thinks that increased ETH fees will further increase transaction volumes:
“Obviously, we need to examine user behavior when gas charges are not subsidized. I believe the transaction volume will increase based on this idea. ”
As of now, Ether transaction volumes increased from $ 37 billion to $ 44 billion on January 28. The second largest cryptocurrency is trading at $ 1,639, up 6.3 percent in the past 24 hours.