is defi reason for skyrocketing fees?

[Coin_trader]

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.

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[larus]

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

[SistaFista]

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.

[SquirrelJulietGarden]

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.

ETH/ERC20 - Check and select good Gas price

[X-ray]

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

[todiefor17]

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.

And the fact that they want to transact faster causes the transaction costs to increase? That comes from demand, and as demand grows, miners will prioritize those who pay more fees to make transactions faster.
Ok, I got the point.

[Psynthax]

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.

And the fact that they want to transact faster causes the transaction costs to increase? That comes from demand, and as demand grows, miners will prioritize those who pay more fees to make transactions faster.
Ok, I got the point.

Well it's basically like a race. when everyone want their tx to be ahead and get confirmed faster than anyone else they will set it higher and then another will follow that path thus the increase in fee. it always like this when at bullish times or when something big happening like cryptokitties back then same thing also happened.

When bitcoin reached ATH back then in 2017 the fee is astronomically high that people switched over to alternative coins. I guess that's always the problem with blockchain and the system need some kind of solution to that.

[SillyGirl]

Maybe this article helpfull? https://www.worldcoinindex.com/news/yearn-finance-native-defi-cryptocurrency-yfi-surges-190-over-the-last-week-price-tops-38-000

[Ridwan Fauzi]

There are at least two threads already who discussed as your concern, you check one by one

1. https://bitcointalk.org/index.php?topic=5268428.0
2. https://bitcointalk.org/index.php?topic=5258496.0

An old problem, so you have to thinking before you create a thread, I mean you can check the search feature to make sure the issue has been disscussed or not.

[_IRMAN]

I think so, a lot of defi tokens are traded on DEX and this makes the fees go up because people want fast transactions, the bigger the fee the faster the transaction is processed.

[giammangiato]

I am also a bit worried about the increasing of the gas fees . It's too high at the moment do a movement between wallets. I think that it's only for the defi reason, after this period probably everything will go back to the normality as some months ago.

[justdimin]

Well, for ethereum it really is. Looking at the situation right now, that is the most thing people use ethereum blockchain for lately, obviously the DeFi scene realized this and moving towards other blockchains as well but the most credible one has always been the ETH chain so they still continue with that.

Just start of the 2020 we had over a billion dollars in there, that means a ton of new money coming in an out exchanging hands and that obviously skyrocketed the fee's, how could it not. We didn't had this extra billion dollars so it wasn't ready for such a thing. However good thing about ETH blockchain, since that crypto kitties time we actually improved a lot and it could actually sustain this, it will just take some time to get used to it and for hype to die down a bit.

[tycsols]

Defi is now kind of punishing the investors and traders and you can check that especially on uniswap. So the situation now is that although many investors have made good money out of all this rush but small to medium traders are struggling badly because all their profit is being lost in high fee.

[blckhawk]

Is this permanent and how long will this settle, for so many months I had my transactions all in Ethereum and Bitcoin but now I have to look for a better alternative, this is the time that other altcoins will since because of this big increase on the gas fee.

I am pretty sure that this surge in transaction will not be permanent. Things will go back to normal once ETH 2.0 will be officially release so for the meantime just hold it longer, don't make any transaction as much as possible. Due to hype of DeFi there's a lot of transaction are occuring that causes congestion upon the network. And I am pretty sure things will be sort out after this period.

[Google+]

Is this permanent and how long will this settle, for so many months I had my transactions all in Ethereum and Bitcoin but now I have to look for a better alternative, this is the time that other altcoins will since because of this big increase on the gas fee.

I am pretty sure that this surge in transaction will not be permanent. Things will go back to normal once ETH 2.0 will be officially release so for the meantime just hold it longer, don't make any transaction as much as possible. Due to hype of DeFi there's a lot of transaction are occuring that causes congestion upon the network. And I am pretty sure things will be sort out after this period.

As long as I trade cryptocurrency, the increase in cryptocurrency prices will never be permanent, my friend can see and draw history in 2017 the price of bitcoin can be very expensive like that but only temporary and after that the price drops again, that's proof that no cryptocurrency has a price stable or permanent.

[Shohag123]

I think DeFi is one of the main reason that ethereum gas is soo high.I have never seen such a gas fee.You have to use Gwei 500.Its still unbelievable.And we are all suffering because of that.And Because of the DeFi trend ethereum's gas fee is increasing.Most DeFi coin is listing on Uniswap.And all wants their transaction to go fast.And they are using more gas fee and that's way gas fee is increasing.If you pay high gas fees to transfer or trade your coin in Uniswap or other exchanges ,then miner wants more fees.The more you pay, the fees will more increase.And because of DeFi coins updown price more and more transaction are running.I think vitalik should do something to stop such a mess.

[bobyhodob]

I am also a bit worried about the increasing of the gas fees . It's too high at the moment do a movement between wallets. I think that it's only for the defi reason, after this period probably everything will go back to the normality as some months ago.

maybe the ethereum developer has already realized this problem and himself made ethereum 2.0 I think to provide a solution to this problem, so maybe the cost of gas will be lighter and faster. I hope ethereum 2.0 can have a high price but have low gas costs.

[qomariah95]

I see a lot of people saying the reason for the increase in gas costs, is due to the DeFi hype. The reason for this is certainly still reasonable, because most DeFi still use the ethereum blockchain. So that costs continue to rise and it is even difficult to wait for them to fall back down. Therefore, one of the steps to avoid high fees is to use the TRON blockchain or the like.

[Renampun]

I see a lot of people saying the reason for the increase in gas costs, is due to the DeFi hype. The reason for this is certainly still reasonable, because most DeFi still use the ethereum blockchain. So that costs continue to rise and it is even difficult to wait for them to fall back down. Therefore, one of the steps to avoid high fees is to use the TRON blockchain or the like.

most DeFi projects use Ethereum...
The high transaction rates for almost all DeFi projects have made Ethereum's gas fees go up, I always track Ethereum's gas fees because there are tokens that I want to sell but at this time the gas fees are still very high, for low gwei have to spend $ 3.

[Cryptoababe]

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.

DeFi is definitely the reason for skyrocket of fees. When you check eth gas station.. Every thing related to DeFi is always at the top. Especially uniswap.
Even uniswap is the greatest gas sucker of all time.