Ethereum gas prices have set new records, with single DeFi transactions costing over $10 in fees. High fees are the result of congestion, as users pay ever higher fees to ensure their transaction gets into a block. As DeFi takes off, the price of gas on Ethereum threatens its future. Or does it?
Is the Party at Vitalik’s House?
Gas on Ethereum can be seen as “block space rent” and many are saying the rent is too damn high. That depends on who you ask, though. Even a $10 fee is a small fraction of many DeFi trades, as speculators are by definition those who have “money to burn.” For the moment at least, DeFi is a market that exists on Ethereum. If you have profitable trades to make on DeFi, then gas is simply another cost of doing business, since there is no other way to make the trade.
A Playground for the Wealthy
DeFi Participants are Actively planning Moves
High Gas Prices Lead to Questions About The Promise of Blockchain
Written by Stuart Popejoy
Did you know you can create smart contracts on Bitcoin Cash? Read more here.
This is OP-ed. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Marc van der Chijs, licensed under CC BY-ND 2.0