is defi reason for skyrocketing fees? - page 2.

X-ray

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Quote from: larus on August 31, 2020, 10:42:52 AM

Defi and uniswap caused fees like this and no one know when this will be fixed....

The network itself will be recovering the network fees. If the traffic will be less and then the tx fees will be reduced too caused by how much the tx fees depends on the how big the traffic in the network. More people more transaction and more fees.
I think that this is a basic knowledge

SquirrelJulietGarden

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Without DeFi, fees on Ethereum network rises and falls at different period. Fees often rise when ETH transaction number increases (when price is pumped or dumped). Another thing can contribute to fee rises on Ethereum network is sudden growths of dapps on Ethereum network like Cryptokitties in 2017 and recent months we have DeFi projects.

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SistaFista

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It is, as we can see that the most contributor of the gas fee on Ethereum are Uniswap project and USD Tether.
The solution should be provided so that the fee won't make people afraid to using DeFi platform and pay the gas fee.

larus

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Defi and uniswap caused fees like this and no one know when this will be fixed....

Coin_trader

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Quote from: meanwords on August 30, 2020, 05:20:29 AM

Yes it's DeFi. If you can't handle the fee right now, you better avoid ETH for now because I find Ethereum fees lately too absurd to trade anything even if investing in DeFi projects looks promising. Or you can wait for Eth 2.0 and hope that it will fix or lessen transaction fees.

There are ways to avoid this though by using centralized exchanges that handles DeFi or any other projects that is base on Eth since fees there are different when trading.

It's not just due to DeFi alone, the price also affected due to BTC price that affects ETH value too whenever BTC changes in price or have some phmp. But mostly now that almost all DeFi projects bring too much traffic in the system, it causes too much demand that requires a higher fee to process. ETH 2.0 should be developed as well these time or better earlier before more DeFi projects came in, we see DeFi continuously to get attention from investors and it also affects the old coins or token long listed to have some transactions too.

zasad@

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Uniswap V2 and Tether USD lead in terms of commissions to date.
It only says that trading volumes on decentralized exchanges are growing very strongly.

Many people start bragging about easy profit on social media
https://twitter.com/i/web/status/1297068546023993349

I am convinced that now the commissions are not the highest and their cost will grow.

CuriousGeorge

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Quote from: todiefor17 on August 31, 2020, 03:32:20 AM

The reason is that DEFI projects are being traded on DEX platforms being hunted by people, uniswap's transaction volume surpassed $ 400 million yesterday and surpassed even coinbase. On an exchange where people find a way to own tokens through Pre-sale at the best price, the competitiveness is very high and they are willing to spend a lot of GAS fees to quickly own tokens. I hope in the future Ethereum will optimize this problem.

The problem is those who have been trading at the uniswap wanna make their tx to be delivered as fast as possible through increase the fees to make their tx to be included into the fastest block.
The pre-sale was not giving a lot of contribution to the increase of tx fees in ethereum network.

thesmallgod

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Normally, the gas fee increase when the blockchain network become congested. Currently defi is trending and it is a huge hype that makes the network getting congested so in this case defi is contributing to the reason why the transaction fee is high but also any time the price of Cryptos is getting high, the transaction fee too become high irrespective of defi or not.

Reid

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I think we've been through the same experience and a lot of us are also affected by it.

If you are really in a hurry to use Ethereum then yes, you will need to go on higher amounts to get the right speed of your transaction.
But if not, there is always the other option. Cheap but slow. It could take a day.
Another recommendation is to look for another coin that is available for buying DeFi coins. If XRP is available then use that. Way cheaper but you may have to pay for the exchange, trading it to XRP.

minairia3

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What more could be the reason for this? Uniswap as the main ecosystem of defi projects are massively using their platform and we can see why the fees rise and this time is longer than expected.

10 - 15$ fee is huge, so if you are gonna trade some tokens make sure your trades will be worth it cause imagine the fee on each trades. Youll be needing to trade with a high additional fee if you are gonna used uniswap. Damn eth, come on Vitalik can you process fast the eth 2.0 which shoe the fee is near zero.

bigcash2011

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Quote from: Rehmanchoudhary5 on August 30, 2020, 04:08:13 AM

I was a bit worried from last few days regarding the high gas fees because I've to pay 10 to 15$ per transaction, that's a huge amount for me as fees, so I started my research regarding the gas fees, and found that defi is the only reason that makes the gas fees that high ,due to the huge trend of defi it makes the ethereum network so much busier that we've to pay more than usual for gas fees ,what you think about it ,help me understand current situation for being so high fees.

Yeah the transaction fee is terrible, the token swap projects should automatically send new coins to holders because transaction fee for manual swap is very high. I had two old tokens which needed swapping to new ones, yesterday i was free so thought of doing that, so i had around $27 worth of tokens when i tried to swap to new tokens it asked me $11 worth of eth and then i tried the other one and the fee was similar so i had to drop the idea to swap because of the high fee and small amount of tokens.

bayu7adi

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dont be greedy

Quote from: Rowenta on August 30, 2020, 04:26:52 AM

DeFi is a part but not entirely DeFi's fault here too but don't forget that Ethereum 2.0 is another reason why many whales are buying Ethereum and storing presently, staking on ethereum blockchain would be awesome isn't it?

indeed, DeFi's existence is not 100% the main cause of the increase in GAS in Ethereum, but the hype that occurs is triggered by the skyrocketing popularity of DeFi as a new model in the world of crypto, especially financial. We do not...

and I am sure, this phenomenon will not last as long, because there must be something new that is more interesting than DeFi

coin-investor

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Quote from: Rowenta on August 30, 2020, 04:26:52 AM

DeFi is a part but not entirely DeFi's fault here too but don't forget that Ethereum 2.0 is another reason why many whales are buying Ethereum and storing presently, staking on ethereum blockchain would be awesome isn't it?

The two are the biggest contributors why we have this very high fees and people are looking for alternative coins in place of Ethereum because traders cannot cope up with the very high fees, this is the time that other coins will shine because of Ethereum's congested network, the last time it happens was the Crypto kitties hype and here we go again but this time it will take some time for this to get fix.

raidarksword

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With the demand of DeFi right now, it's one of the reasons why gas fees are so high and cost too much to send tokens on Ethereum network that what makes it more congested especially wherein everyone uses uniswap to exchange DeFi tokens and such. We might not see the downfall of gas fees anytime soon because of many transactions are stacked which means we have to deal with it and spend more gas fees more often to succeed our transactions.

lobo13hf

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People were actively exchanging their defi token on the uniswap and that makes some people must have paid a higher fees to make their transactions to be included in the priority transaction by the block to be verified. WIth the growth that happened with DEFI and i believe this is caused by defi consider the daily volume trade of defi was also getting centralized on uniswap too.

todiefor17

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The reason is that DEFI projects are being traded on DEX platforms being hunted by people, uniswap's transaction volume surpassed $ 400 million yesterday and surpassed even coinbase. On an exchange where people find a way to own tokens through Pre-sale at the best price, the competitiveness is very high and they are willing to spend a lot of GAS fees to quickly own tokens. I hope in the future Ethereum will optimize this problem.

best2015

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Quote from: Rehmanchoudhary5 on August 30, 2020, 04:08:13 AM

I was a bit worried from last few days regarding the high gas fees because I've to pay 10 to 15$ per transaction, that's a huge amount for me as fees, so I started my research regarding the gas fees, and found that defi is the only reason that makes the gas fees that high ,due to the huge trend of defi it makes the ethereum network so much busier that we've to pay more than usual for gas fees ,what you think about it ,help me understand current situation for being so high fees.

You probably heard of defi hype on news or even here on this forum.
So eth miners are just not capable of maintaining this much of transactions, this lead to fees getting higher.
Transaction fees are not as bad as exchange fees though, so I myself decided to settle everything down and make couple wise decisions instead of shorting

lizarder

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many of which cause fees to rise apart from DeFi, the trend on shittoken that is listed on Dex related to Defi also affects, not to mention the dapps trend, and there's nothing that can be done about the cost issue especially if you buy defi tokens on dex exchange the only way to save fee is to buy defi tokens on the cex market using cost-effective currencies such as litecoin, tron, doge and sell them to usdt or eth.

Kotone

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Actually the main reason is the uniswap activity. There are a lot of users whom trading there now. Yes defi could be the reason. Many new and old project has been trading there and even uniswap surpass the trading volume of coinbase pro. Imagine how big is the difference, its just show how demand of uniswap to every traders.

mr.smith

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Quote from: masterrex on August 30, 2020, 11:09:56 AM

I think it's not the Defi's fault only because if we look and check it on Etherscan it will reveal that UniSwap, Tether and Forsage are the top 3 Gas Guzzlers including some of the Defi platforms too thats why Defi is not the only reason why transaction fees are skyrocketing but some Defi platforms are part of it.

I don't see this going to be fixed soon, many developers are now in the process of creating DeFi projects and once they launched it will be an additional burden for the Ethereum network, scalability is now a big issue. on a positive note, a lot of Ponzi scheme like Forsage are now on Tron
because of the fee.so we still going to pay huge fees.

Topic: is defi reason for skyrocketing fees? - page 2. (Read 416 times)