The growing popularity of Decentralized Finance (DeFi) protocols at Ethereum (ETH) has contributed to tariff increases, with the network processing a high $ 6.87 million in total tariffs.
Speaking to Cointelegraph, Synthetix (SNX) founder and CEO Cain Warwick warned that high tariffs were affecting DeFi growth, saying:
“In the last three months, we’ve gone from an environment where DeFi was expensive to use and a bit slow, for now, [where] for many it is costly. “
Ethereum tariffs have boosted nearly 100% over the past 24 hours as blockades saw transaction costs shatter the previous $ 3.27 level.
Ethereum transaction rates, 3-month chart: BitInfoCharts
While the average Ethereum transaction fee is more than the daily revenue in many countries, the additional intelligent contract executions required to engage with DeFi protocols have seen users reporting fees of up to $ 100.
The main growth block
The rush for stock currencies in the doomed YAM protocol saw most SNX report transaction fees of up to $ 99 when seeking to collect weekly participation bonuses. Reddit user Willy 3380 posted:
“Asking for a $ 99 transaction fee is ridiculous. This will be a major obstacle to growth if someone on the team does not address this. “
To mitigate excessive fees, Warwick revealed that Synthetix will launch the Ethereum Virtual Optimization (OVM) machine two scaling solutions faster than previously planned. Already traded on the testnet earlier this year, the L2 solution also enables several thousand transactions per second, rather than a fraction of TPS:
“We are focused on OVM and I think it will be sooner than ‘three to six months’ to be honest. I think we will go faster than that because it is probably one of the first three things we need to do. to nail. “
The solution theoretically works with any Ethereum smart contract.
Possibility to remove Ethereum
Layer 2 solutions to the Ethereum blocking problem are becoming increasingly important due to delays in the ETH 2.0 list. Messari product leader Qiao Wang claimed that Ethereum could face aggressive competition from rival scalable areas:
“I changed my mind after using a dozen Defi platforms. As long as ETH 2.0 is not fully rolled out, there is a clear possibility for a highly scalable blocker to remove Ethereum. Paying the $ 10 transaction fee and waiting for “15 seconds of resolution is just bad.”