The increase in the price of Ethereum and the recording of a new historical peak has caused the amount of commissions in the network of this digital currency to experience a sharp jump.
To Report Coin Telegraph, The increase in fees has made it less cost-effective for ordinary investors to use defy protocols.
Ethereum prices have risen about 10 percent to about $ 1,660 since yesterday. Ethereum’s fees have risen by 20 percent at the same time, and the network now averages $ 17.6.
New data shows that transactions on some of Diffie’s more complex protocols now cost more than $ 1,000. A Twitter user with the username Olive Allen reported that the approximate fee on the Rarible platform is about $ 5,000.
Coin Telegraph writes in part of his report that a large transaction on Synthetix requires a fee of more than $ 1,100. It is worth noting that this protocol is working on an update that will affect the amount of fees.
Simpler transactions, such as a conversion on platforms like Uniswap and SushiSwap, cost between $ 40 and $ 75.
After raising fees, Checkmate, the host of the ConsensusRough podcast, advised users to consider their fees before investing in protocols that require smart contracts. He also published a picture of one of the users’ transactions and pointed out that the fee for some transactions in the Ethereum network is more than the price of Ethereum!
In addition to Ethereum, bitcoin transaction fees have also increased. Currently, the average bitcoin transaction is over $ 14.
Despite the increase in Bitcoin and Ethereum network fees, Ethereum traders are optimistic about the digital currency’s jump in price and reaching a new high of $ 1,700, and have a completely bullish outlook.
Ethereum prices have continued to rise after rising to a new all-time high two days ago, rising 7 percent in the past 24 hours. The price of Bitcoin has grown by 6% since yesterday and is trading in the range of $ 38,000.
Ethereum’s high fees have made the importance of second-tier solutions even more apparent. Synthetics is planning to migrate to the Optimistic Layer 2 solution to lower average commissions. Other protocols seek to take advantage of similar solutions, such as xDai or migrating to first-tier networks such as Polkadot.
Describing the uptrend, Chandler Song, CEO and co-founder of Ankr Network, said:
The upward trend in the market has led to the identification of many vulnerabilities in the Ethereum network, and many defy projects have been implemented on the Ethereum network.
Some argue that one should not wait until Ethereum 2.0 to reduce commissions. Ethereum developer Tim Beiki has previously said that significant improvements were made last month in the experimental network of the Ethereum 1,559 improvement plan.
The 2019 Ethereum 1559 improvement plan was proposed by Vitalik Butrin and Eric Conner. The plan includes a mechanism for eliminating tokens to reduce fee fluctuations. As the plan reduces miners’ incomes slightly, it has met with widespread opposition from the mining community.
Grayscale had previously predicted that the plan would create an “unfinished cycle of positive feedback” on the network. According to Schell’s prediction, with the implementation of this plan, Ethereum’s supply pattern will change and the new supply pattern can cause the price of this digital currency to jump sharply.