is defi reason for skyrocketing fees?

[Rehmanchoudhary5]

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.

[1714134412]

1714134412

[1714134412]

1714134412

[1714134412]

1714134412

[SomeJasonGuy]

Yes, I would say it's one of the reasons. But even generally increase in interest and transactions are a cause for it. However, things tend to stabilise over time, so the high fees won't always be a problem.

[Rowenta]

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?

[Davian144]

One way to avoid being subject to high ETH gas costs is to use a platform other than the ETH platform, for example, such as TRX, XRP and LTC and XLM, because the four platforms I mentioned have very low transaction costs, never even the same high. very, but we also have to always monitor the development of gas costs on ETH because I saw two days ago the gas costs have started to decrease from the current gas costs, and to monitor this I will provide two very useful links for you:

1. https://ethgasstation.info/

2. https://etherscan.io/gastracker

[xOdiumNostrumx]

For sure, it is probably the only reason for those insane ETH transaction fees, especially the yield farming ones, people are locking insane amounts of their funds into them and clogging the network. I just saw that the "fast" transaction on ETH is 500+ gwei now (in MEW), its the highest I have seen so far this season.

[key4co.in]

DEFI is partly the reason for high fees on ETH transactions, especially from uniswap. Yesterday I tried swapping my ETH to a token CORN, the tx was so high almost 8$ for a small tranaction. I thought ETH fees dropped by 80% as news had it, what happened after? I believe and hope ETH 2.0 final launch curbs this fee issues, it's annoying. Crypto is supposed to boast of low fee tranactions, this high fee is opposing that notion.

[nomenclatur]

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.

for now, it is better not use blockchain ethereum because of the cost of expensive gas will be long and will drain ETH if it continues to use ethereum for the transaction will be burdensome costs as gas prices continue to rise until the current project Defi really makes the cost of expensive gas that makes all things very difficult to send ethereum to exchange a need for quite a long time and high cost of gas that I decided to not use ETH for now.

[meanwords]

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.

[shakesbear]

Someone earns a lot more and they probably don't care about the price of gas, they earn a lot more, but I think part of this is the fault of the developers, who should have done something with this situation a long time ago.

[tabas]

Yes it is part of the reason why the fees are high. But don't let them take all the credit with that.
The demand increases and everyone is transferring combined with the fomo of defi and pos.

[optimisticcm]

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.

It was obviously one of the main reasons because of a lot of transactions going on related to defi as well as their tokens caused congestion in the ethereum network that resulted in high transaction fee while if you traded on swap platforms like uniswap then one reason was comission which they are charging to pay liquidity providers.

[LbtalkL]

Yes, I am pretty sure of it. These DeFi contracts requires a lot of gas limit like 200k or more plus the gas price now is 170 gwei more or less. Unlike normal ethereum transaction wallet to wallet only requires 21k gas limit. It is a war on GAS price some traders on uniswap wants their transaction to be executed first so they are willing to pay a higher gas that is why it keep getting higher and we have a lot of defi platforms now if you combine them they will clogged the ethereum network.

[BitTraderCute]

I don't think it is DeFi is the reason for skyrocketing fees.  It is the design of the ETH fee system that makes the fee skyrocket.  DeFi would probably made the ETH in demand that created so much transaction but if the system were created not to be affected by the number of transaction being done, then the fee won't skyrocket.  Blame the high fee to those greedy developers who designed fee system that way and not the DeFi project being popular.

its right Defi project's hype create huge demand and also make network traffic in ethereum skyrocketing. much people didnt want to miss best price in uniswap so they set gwei in high amount and it repeated by other people till finally network only confirm transaction with high gas. if we know in ethereum network , each transaction with high fee will confirm first . its be already system in eth blockchain and be main problem now.

[taguig]

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.

[cryptomaniac_xxx]

Yes, traders are constantly on the trading block and billions of money flowing on the network, causing the fees to go and spike. Is it good? well it depends, it could mean that there are liquidity on the market as volumes go up and its a bullish indicator? However, we are going to suffer in the long run if the fees are going to increased day by day, it will have a negative effect specially for average joe's.

[Fundamentals Of]

This is a normal occurrence not just with Ethereum (ETH) but even with Bitcoin (BTC).

When the network is clogged with so many transactions lining up, the competition will be high. It is therefore normal that other users would be very willing to pay higher fees for their transactions so that they will be prioritized over those who are paying the minimum or a little higher than that.

Defi could be one of the reasons. Another possible reason is that the price of Ethereum (ETH) has been rising these past few days. It fell down lower than $400 but that was very quick. It exceeded $400 again.

Also, if there is a significant price increase, the tendency is that the network would become busier, thus resulting to a clogged network which also results to higher fees, that is, if you want your transaction to be confirmed earlier.

[masterrex]

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.

[lumeire]

One way to avoid being subject to high ETH gas costs is to use a platform other than the ETH platform, for example, such as TRX, XRP and LTC and XLM, because the four platforms I mentioned have very low transaction costs, never even the same high. very, but we also have to always monitor the development of gas costs on ETH because I saw two days ago the gas costs have started to decrease from the current gas costs, and to monitor this I will provide two very useful links for you:

1. https://ethgasstation.info/

2. https://etherscan.io/gastracker

Your solution would only work for those people who are using ethereum network because of its lower fees for sending their money in Crypto to different addresses, but what about those who are already having their money saved as ethers and want to move it, they surely have to pay the fees, one thing I have seen is that many a times the average transaction fees also makes your transaction included in a block which is mined in maybe 2 to 4 hours from time of your transaction which can be decent if you don't need your funds sent to the destination address urgently.

[zulfi125]

DeFi can be the reason for increasing Etherium network fees, the fees in increased after the Ethereum upgrade 2.0 before upgrade the fees were very low and after upgrade also increased the demand of ETH due to staking rewards I think Ethereium network fees are increased so that can be pay to miners high reward for their mining ETH.So people are switching to TRON and other blockchains for their projects due to high fees.

[AmoreJaz]

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.

combination of several factors so it's not only DeFi that is currently contributing the increase in gas fees. now, i am wondering if eth 2.0 can resolve this current bottleneck? and i think they should do something about it. else, it is not good for other projects to build under eth network anymore.  they will find other blockchain that will cater they needs without troubling their customers with unreasonable fees.