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In the last 12 months, decentralized financial solutions (Defi) and decentralized exchange platforms (Dex) based on Ethereum have been very popular. Dex applications in particular saw massive demand and in the last 30 days the Dex trading volume reached swaps of $ 39 billion. However, one of the biggest problems for Dex users continues to be the huge fees for interacting with platforms like Uniswap and other Dex platforms.
Ethereum decentralized exchange platforms See record volume of 30 days
Dex applications like Uniswap, 1 Zoll, Sushiswap, 0x, Matcha, Kyber and others have been very popular platforms over the past year. The defi market aggregator defipulse.com shows that more than $ 22 billion is tied to Defi platforms today. A significant portion of this banned ether value is also represented by Dex applications and the growing user base. On January 14, 2021, statistics from Dune Analytics shows that the Dex trading volume was $ 39.86 billion last month. Dex applications have swaps worth $ 12 billion in the past seven days and the largest Dex application by volume is Uniswap.
The trading volume of Uniswap is followed by Sushiswap, Curve, 0x and Balancer. Uniswap and Sushiswap have a global trade volume of billions each week and Uniswap is the fourth largest Defi application. Although decentralized exchanges had large TVL balances and significant trading volumes, the crypto community was stunned by the fees for Ethereum-based Dex applications.
Crypto users are complaining about massive Dex fees
For example, the popular Bitcoin researcher and author Hasu said Some “Defi projects produce nearly as much cash flow from fees as the entire Bitcoin network.” In the past two weeks, a large number of crypto proponents have complained about the massive fees associated with Dex platforms like Uniswap and Sushiswap are.
Additionally, in some cases people had to eat the onchain trading fee associated with it, but the Swap ultimately fails. On January 7, 2021, bitcoin expert Brad Mills became tweeted on paying a trading fee of USD 120.
“Just an occasional $ 120 fee to use Uniswap on Ethereum,” Mills said. “Defi is the future of finance for non-banks,” he added sarcastically. A person a few hours ago wrote: “I’m going to cry now because of the uniswap fees I just paid.”
In another tweet on Friday, a user stated that “the fees for Uniswap are insane – they need to find a way to contain this or Uniswap will plateau as a decentralized exchange,” he added while taking a picture of the Friday Uniswap fees shared.
The Screenshot shows that the slowest transaction costs $ 40 in ether fees and that the transaction should be completed in 12 minutes. A medium-speed transaction that completes in a minute costs over $ 58 to interact with Uniswap. Additionally, the fastest confirmation time of under 30 seconds brings a merchant back just for the $ 100 fee. “Oh my god these uniswap fees are insane …” said another person tweeted On Friday afternoon. Another person complained and said they wanted to act but the Dex fees were too high.
“I want to trade with Uniswap, but I’m not rich yet, so… fees. Any alternatives? ” the person asked.
Of course, during all the discussions about the high Dex fees, a large number of members of the crypto community have spilled their own favorite blockchain with claims for lower fees. Despite Ethereum’s colossal lead in decentralized funding (defi), many people believe the network will stall if fees don’t improve in the near future. One person even compared the Ethereum network with BTCIssues with fees and transaction congestion and describes both networks as outdated technology.
“ETH is the Bitcoin from Defi ” explained The Twitter account is called “Green Eggs-n-Sam”. “Old Tech, couldn’t scale fees from> 10 years [are a] Joke, flawed incentives, fumes with first mover advantage, practically useless without a centralized layer 2, while superior solutions and departures emerge on the left and right. “The crypto advocate’s harsh criticism was actually a pretty popular tweet, with 165 likes at the time of publication.
What do you think of Dex’s recent trading volumes and the massive fees associated with Dex application swaps? Let us know what you think on this matter in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Twitter, Brad Mills, Dune Analytics
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