ETH's fees on "De-Fi" platforms are ridiculously high

[Ghondronk]

When an innovation arrives and people spread good news about that system, more and more people tend to get the first mover advantage. When that happens, systems might get overloaded and hence the performance might get reduced. To overcome such scenarios there should be a mechanism to control the traffic to a manageable level and increasing the transaction fees is once such method of doing so. That will make sure that the users who are willing to pay a considerable amount as fees get a higher priority while ensuring the load on the system does not rise critically.

[terizla]

Last week i wanted to swap around 0.5 eth to USDT through uniswap and the fee was about 0.08 Eth , that's crazy, I dont know why ehtereum is such a popular platform for dapps and Defi and I dont think it worth it to have a swap like that unless it's necessary, I hope ETH 2 solve this thing .

I hope so, with this crazy fee maybe the longer the popularity of ETH will decline and it will have a negative impact on it. I hope with ETH 2 the shortage of ETH will be corrected, especially the cost of fee.

[jostorres]

I am sure with this new eth 2.0 system we are going to see much better fee structure and thanks to that there will be a lot better dex platforms that would be used without a problem. I don't know how they are going to deal with it but 2.0 is not something that only focuses on going from proof of work to proof of stake, that is just one part of it, the other parts probably consists of some fee restructure as well because if it doesn't that is going to have a bit of a problem.

However at the end of the day it is us that decide on the fees and the quicker we want to move it the more fee we pay, if all of people who use gas suddenly decide to spend a lot less on fee's we can drop it all together. But everyone wants to pay one gwei higher than others and that keeps making it higher and higher.

[Psynthax]

In the coming months I hope to see ETH come down in value. The team in ETH are not serious to tackle this high gas fee and it's painful to see.

Every update on blockchain more specifically ethereum as I see kinda slow and need to undergo such complicated process for example ETH 2.0 need to reach some treshold of eth staked before launched and many more. I'm maybe expecting ETH fee to be solved around the start of next year. Even ETH2.0 is not gonna come anytime soon its frustating.

[Abiky]

I am sure with this new eth 2.0 system we are going to see much better fee structure and thanks to that there will be a lot better dex platforms that would be used without a problem. I don't know how they are going to deal with it but 2.0 is not something that only focuses on going from proof of work to proof of stake, that is just one part of it, the other parts probably consists of some fee restructure as well because if it doesn't that is going to have a bit of a problem.

However at the end of the day it is us that decide on the fees and the quicker we want to move it the more fee we pay, if all of people who use gas suddenly decide to spend a lot less on fee's we can drop it all together. But everyone wants to pay one gwei higher than others and that keeps making it higher and higher.

That's certainly true, mate. The next iteration of the Ethereum blockchain, will certainly improve the fee structure at every level. While the reduction in fees will be noticeable in the short term, additional work is needed in order to keep it that way. Eventually, the Ethereum blockchain will become clogged up as more people join the "De-Fi" craze. Dapp developers are going to need to consider migrating to second-layer solutions in order to maintain fees at their lowest level. It's a collaborative effort between the Ethereum project developers, dApp developers, and individuals as a whole. Otherwise, fees will continue to soar, making Ethereum no different than Bitcoin itself.

With high fees, "De-Fi" will no longer be a viable option for those looking into "decentralized banking". The "De-Fi" industry will only be related to the wealthy, as they'll be the ones capable of paying exorbitant fees on the Blockchain. Luckily, there are several competing blockchain networks with greater transaction capacity than Ethereum. Some say that Binance Smart Chain (powered by BNB) and EOS are Ethereum's top contenders in crypto land. Binance's own blockchain network enjoys of unparalleled performance, while being compatible with ETH-based smart contracts. There are many promising "De-Fi" apps on the BNB blockchain right now. They're certainly much faster and cheaper to use than their ETH counterparts. Ultimately, people will decide whenever they'd want to pay high fees on a blockchain network or not. As long as people choose to pay high fees on the ETH blockchain, "De-Fi" won't be going anywhere. Just my opinion

[chip1994]

Commissions used to be really huge, sometimes they came to $30-40 on the air, now of course there are less commissions, but they are still tangible, I would like them to be even smaller.

Transaction fees will decrease when Ethereum 2.0 is released. There will be more staking people and that will make processing the blocks faster and with a lower fee. Even we won't be afraid of network congestion because there are too many resources handling blocks in the next month.
This upgrade of Ethereum will be able to make the Defi project emerge again. The traders will make money easily on Uniswap without having to worry about fee and token transfer time.

[articlecity]

Last time I've checked, fees in ETH (gas) for withdrawing tokens from a "De-Fi" platform were well above $100 (in USD). I have around $110 worth of DAI sitting on Compound without being able to withdraw it because of the ridiculously high fees on the ETH blockchain. If the trends continues, "De-Fi's" adoption in the mainstream world will stifle. No one will want to use "De-Fi" platforms for borrowing or lending money if costs aren't negligible. Scaling towards ETH 2.0 is an option, but it may take quite some time before we're able to experience a steep reduction in fees. There are alternative smart contract platforms like EOS and TRON, but the number of "De-Fi" platforms on them are extremely limited.

As of late, Vitalik has been patronizing "second layer" scaling solutions in order to remediate the issue in the short term. It'll be up to "De-Fi" platforms' developers to switch from the main ETH blockchain to a "Layer-Two" scaling solution like OMG or ZkSync. Migration might be a challenging task but not impossible. Sooner or later, ETH will need to scale its own Blockchain network with the adoption of sharding and PoS.

Any thoughts?

As eth 2.0 mainnet launch is now just few days away im quite hopeful that high fee and slow transactions will become story of the past and then will come real adoption and real innovation in crypto sphere.

[Lizzylove1]

The fees are killing. I make profit, I spend that on fees, this has kept me away from Uniswap for some time now, but I am going back to hit on uniswap if I can see good coins. I tried to switch to Binance Smartchain, but uniswap has gotten more liquidity and more pairs.

[Abiky]

Transaction fees will decrease when Ethereum 2.0 is released. There will be more staking people and that will make processing the blocks faster and with a lower fee. Even we won't be afraid of network congestion because there are too many resources handling blocks in the next month.
This upgrade of Ethereum will be able to make the Defi project emerge again. The traders will make money easily on Uniswap without having to worry about fee and token transfer time.

The positive effects of the ETH 2.0 upgrade won't last for long, as "De-Fi" platforms experience ever-increasing demand from people in the mainstream world. Eventually, fees will rise at a fast pace because of too many people interacting on the Ethereum blockchain. Both PoS and Sharding help to reduce the burden on the network. But I believe something else is needed in order to maintain fees in their lows. I think second-layer scalability solutions will be the future of Ethereum, as dApp developers adopt them more thoroughly. "De-Fi" platforms can enjoy dirt cheap fees alongside blazing-fast transactions by making use of a Layer-Two scalability solution such as the OMG Network, and even Zk-Sync. Regardless of what happens on the main Ethereum blockchain, "De-Fi" platforms using Layer-Two tech will be able to maintain unparalleled performance and reduced costs. This will drive Ethereum's adoption all the way to the moon in a blink of an eye.

In the meantime, we're going to have to deal with high fees one way or another. You can either pay a low fee on the Ethereum blockchain when interacting with a "De-Fi" platform, or simply switch to another blockchain (like TRON, EOS, BNB, and many more). With so many alternatives available out there on the market, there's a choice for everyone. The only issue is that most dApps available on the ETH blockchain are not found elsewhere. This will force people to continue using ETH, even if other platforms have cheaper fees and faster transactions. Hopefully, dApp developers would "mirror" their creations on other platforms in order to give people a choice. Just my opinion

[ILuckyGuyI]

I hope that Ethereum 2.0 will do something about the high fees problem. I am not sure about whether it can decrease the fees at a high rate. But I believe that it will be very helpful about it. I really missed the low fees. Nobody would like to pay high fees for any transfer they make.

[usekevin]

I hope that Ethereum 2.0 will do something about the high fees problem. I am not sure about whether it can decrease the fees at a high rate. But I believe that it will be very helpful about it. I really missed the low fees. Nobody would like to pay high fees for any transfer they make.

Now the fees are ridiculous. The amount to withdrew bitcoin from binance is 10$ for one transaction. It mean, if I had transfer of 20$.I have to pay 10$ as a fee for it. The same was encounter for the ethereum. May gas fee leads to the confused state of the traders. Who will ready to pay hugh fee for less transaction. In the case of tokens, the fee will be unacceptable one.

[Abiky]

I hope that Ethereum 2.0 will do something about the high fees problem. I am not sure about whether it can decrease the fees at a high rate. But I believe that it will be very helpful about it. I really missed the low fees. Nobody would like to pay high fees for any transfer they make.

Same. ETH 2.0 will give Ethereum the boost it needs for widespread adoption in the mainstream world. But the upgrade alone won't be enough for fees to remain low for the foreseeable future. Eventually, the Ethereum blockchain is going to need to adopt Sharding and other scalability techniques to stay ahead in the game. For "De-Fi" to work as intended, fees need to stay in their all-time-lows. Nobody is going to pay ridiculously high fees just to make a deposit or withdrawal at a decentralized lending platform. The same thing applies to decentralized gambling, and decentralized exchanges. If only ETH competitors had good dApps to choose from, they would've been a better choice for "De-Fi". They may have cheaper fees and faster transaction confirmation times, but the lack of dApps forces people to stay on the ETH blockchain. Everything will depend on how developers are willing to create decentralized applications (dApps) on competing smart contract platforms.

Nonetheless, time will tell us if ETH fees will continue to soar or go all the way down the drain. It's most likely fees will decline in the future with upcoming network upgrades. Despite ETH's high fees, it's still cheaper to use than Bitcoin itself. Once fees are reduced, "De-Fi" platforms on ETH will become great again. In the meantime, it's best to wait until fees decline in order to make a transaction on the ETH blockchain. This requires a lot of patience, but at least, it's worth it. Just my thoughts

[bitcon]

All this hype around DeFi projects has one huge drawback. Transactions on the ETH network are now very slow and very expensive. Nowadays, making an Ethereum transaction turns into a real problem. But it is good news that the crypto industry is rapidly moving forward.

[Abiky]

All this hype around DeFi projects has one huge drawback. Transactions on the ETH network are now very slow and very expensive. Nowadays, making an Ethereum transaction turns into a real problem. But it is good news that the crypto industry is rapidly moving forward.

Exactly. The greater the demand for "De-Fi" platforms, the higher the fees on the ETH blockchain will be. This can easily be solved by scaling Ethereum. But this process could take a long time. As long as fees remain high, people will have no use for "De-Fi" on the ETH blockchain. It becomes impractical to pay a high fee every time you want to interact with a decentralized application. While there are second-layer scalability solutions available to remediate the high-fee issue, most developers haven't adopted it yet.

Fortunately, there are a wide variety of smart contract platforms on the market that are cheaper and faster to use than Ethereum itself. The only problem is that most popular dApps are only available on ETH. This forces people to use ETH regardless of its high fees and slow transaction confirmation times. If competing smart contract platforms had the same (or comparable) dApps as Ethereum, they would've gained traction by now. As long as new dApps and tokens are built on ETH, adoption on other platforms will be low. At least, there's hope for Ethereum with the upcoming "ETH 2.0" network upgrade. Just my thoughts

[emmybd]

Since mid-2020 Ethereum gas price has been rising indefinitely, even though the rise began the year earlier. What used to be 24-36gwei is now 300+gwei. Analysts dictate that the cause behind this hike is due to yield-farming and undertaking of complex financial positions.

The gas limit, being 150,000, is quite affordable to swap for smart contracts, and yet the struggle and volume clogging up the first blocks caused gas fees to surge. Usually, swaps cost around $25 and $40 USD, but more complex smart contracts require transactions with a larger gas price. Many DeFi applications such as Uniswap, Curve, Compound and more use yield-farming to initiate complex loans, trades and collateral to profit instantaneously.

Uniswap and Tether are known to be the most active contracts, and they have spent 16,000 ETH on gas in August 2020. Hence, transactions may get quite costly. So this kind of transactions occurs repetitively and piles up volumes.

[sulendra12]

At least it's literally getting decreased for every wei, not like a month ago where you have to paid $20 for a regular speed transaction which is ridiculous to be honest. Since De-Fi hype is literally going down right now but the impact of the hype is not yet shown to us.

Transactions on the ETH network are now very slow and very expensive. Nowadays, making an Ethereum transaction turns into a real problem. But it is good news that the crypto industry is rapidly moving forward.

I don't think it's a huge problem anymore, yes it is still expensive but compared to last month, it has really big gap between these two.

[bittick]

All this hype around DeFi projects has one huge drawback. Transactions on the ETH network are now very slow and very expensive. Nowadays, making an Ethereum transaction turns into a real problem. But it is good news that the crypto industry is rapidly moving forward.

That gives very big impact to the swap and dex. The liquidity gets decreased so hard as people are moving their money to the centralized exchange site.
It needs a very big fees to trade on uniswap or another swap service which has been using two or more transactions in single swap

[BlackRexuz]

I don't know how long this will continue, over time several bounty projects have decided to switch networks to BNB, because gas costs are too high, some prize projects have experienced delays for distribution using ERC20, of course it is very regrettable because of this problem, causing ETH growth is getting more and more unclear and I really hope that this problem will end with no more exorbitant gas costs and ultimately improve ETH growth itself ..

[SistaFista]

The Ethereum gas fee is very high because there are some platforms using the network, such as Uniswap.
They use very high gas to reduce the waiting time of the transaction, and people who using low gas fee will have to wait more.
I think we can use other blockchain such as Tron to avoid high fee, it has TRC-20 token.

[Novatech8]

It's scary, I noticed that gas fee are fair in coinomi wallet than trust wallet, I was trying to send 11$ USDT to binance exchange and I was charge 9$ in trust wallet but when I used coinomi wallet instantly I was able to choose between low mid and high fee, 4$ for sending USDT, craze, isn't it?