Cardano to Take Over Ethereum’s DeFi Job Because of the Absurdly High Transaction Fees
Ethereum’s network fees are gradually becoming a main concern, and more people are aware they are paying absurd fees to carry out transactions on the network. The amount of gas being spend on Ethereum has attained an unprecedented high with a daily average of $6.8 million going to fees alone, as per information collected by glassnode.
Etherscan currently advocates for a gas price of 350 gwei for a 20-second transaction waiting time, which means that people are paying up to $50 dollars to carry out transactions on Ethereum.
Transaction Fees at an All-Time High
One tired blockchain and crypto enthusiast is now asking Cardano’s creator Charles Hoskinson to roll out smart contracts and native assets faster so that all the DeFi business on Ethereum can be transferred to Cardano.
“$ETH fees are RIDICULOUS. The sooner we can start porting DeFi apps across from Ethereum over to #Cardano, the better. Now is our opportunity to strike @IOHK_Charles. Imagine $ADA adoption if consumers have an alternative to paying up to$50 per transaction using ETH.”
Hoskinson, who’s also Ethereum’s co-founder, seems to agree with this idea, suggesting that such high fees are not practicable, and Cardano will take care of it.
“I can’t imagine it, which is why I built Cardano,” he said.
ETH Fees Will Keep Increasing With More Network Activity
The gas price on Ethereum is calculated in ether subunits known as gwei. Although each transaction is required to pay a gas fee in order to be processed, miners usually have an opinion on what the gas should be.
When the network activity surges, miners can ‘motivate’ people into paying a higher transaction fee in order to have their transactions handled faster. Increased wallet addresses and DeFi activity have been generating higher gas on the Ethereum network, and even though the Ethereum community is content with the soaring ETH prices, transacting on the network is slowly becoming untenable.
Data from Blockchair has charted unprecedented high ETH gas prices for the last three months, which has also received a lot of complaints from people who’d wish they didn’t have to spend as much as they did while carrying out transactions on Ethereum.
“Tbh spent more on $ETH tx fees in the past three months that I’ve spent on bank service charge over my entire lifetime,” a user said.
Transaction fees are only going to increase with more DeFi activity, and while ETH 2.0 will attempt to fix this issue, some feel that it might take a while to dethrone Ethereum with better and already accessible solutions.
“I’ve changed my mind after using a dozen of DeFi platforms. So long as ETH 2.0 is not fully rolled out, there’s an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX,” another DeFi user said.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.