Yes, for the second time in the last three weeks, transaction fees on Ethereum (ETH) have soared to new all-time highs.
Lack of control in Ethereum
Yesterday Glassnode reported that Ethereum miners would have set a new record by earning half a million dollars in an hour.
Rising transaction fees and congestion on Ethereum have raised concerns in the crypto community.
In this regard, according to the data published by Blockchair, the average rates reached the maximum of $ 15.48 today. And, the median reached $ 9.35.
This is a situation that has been occurring since the beginning of June and, mainly, has been generated by the growth of DEX and DeFi protocols.
The main concern lies in the sustainability of Ethereum in the short and long term. Average gas prices also offer insight into how far the costs of transacting Ethereum have skyrocketed, from transfers to building smart contracts.
In fact, according to ETH Gas Station, Uniswap and Tether have spent 12.7 million and $ 10.5 million respectively on tariffs over the last 30 days.
“This ridiculously expensive cost becomes a heavy burden on users and an obstacle to DeFi transactions …”Da Hongfei, a co-founder of NEO, tweeted.
So while DeFi has been a key catalyst for the bull run we have seen in ETH price, it has also been a main cause of its technical problems.
This is how congestion leads to a greater number of unconfirmed transactions and almost infinite wait times. The foregoing also creates upward pressure on rates as users pay more because of shorter waiting times.
In this sense, the community has begun to notice that the fees in Ethereum are getting out of control and, at the moment, there is no clear solution.
And it is that the problem even leads to some smart contracts being unusable. Which, as you may know, becomes a crucial problem for the future of Ethereum.
Among some of the solutions they have in mind is EIP 1559, an old proposal that is currently being tested on Filecoin. However, at the moment, there are some layer-2 solutions that offer an alternative like OMG Network.