Despite 'Insane' Trading Fees, Ethereum Dex Volumes Saw $39 Billion Last Month for $100 Swaps:
Currently, the defi and dex platforms of Ethereum is viewing billions. All these despite the high trading fees. What is the scenario showing here in the current trading?
Ethereum Based Defi And Dex
Being very popular during the last 12 months were Ethereum-based decentralised finance (defi) solutions and decentralised exchange (dex) platforms. During the last 30 days, dex trade volumes have reached $39 billion in swaps as dex applications in particular have seen massive demand. Associated with interacting with platforms like Uniswap and other dex platforms, however, one of the biggest issues confronting dex users continues to be the enormous fees.
Seeing Record 30 Day Trade Volumes Is Ethereum’s Decentralized Exchange Platforms
Last year it was found, dex applications similar to Uniswap, the 1inch, also Sushiswap, then 0x, the Matcha, as well as Kyber, and others have thereby been very popular platforms. Further on it came to be locked into defi platforms today, where the defi market aggregator defipulse.com now shows there’s over $22 billion in value. Also represented by dex applications and the growing user base is a considerable amount of this locked ether value. Dex trade volume gathered $39.86 billion as of January 14, 2021 stats from Dune Analytics shows during the last month. The top dex application in terms of volume is Uniswap as dex applications have seen $12 billion in swaps during the last seven days.
Spiked by 103% this month is the aggregate total of all the decentralised exchanges trailing 30-day volume growth.
Followed by Sushiswap, Curve, 0x, and Balancer respectively is Uniswap’s trade volume. According to current stats with around $2.77 billion total value locked (TVL), every week Uniswap and Sushiswap are seeing billions in global trade volume and Uniswap is the fourth largest defi application. The crypto community has been flabbergasted by the fees associated with Ethereum based dex applications however even though decentralised exchanges have seen large TVL balances and significant trade volume.
Crypto Users Complain About Massive Dex Fees
That some defi projects produce nearly as much cash flows from fees as the entire bitcoin network does, for instance, the popular bitcoin researcher and author Hasu recently said. Associated with dex platforms like Uniswap and Sushiswap, during the last two weeks a great number of crypto proponents have been complaining about the massively sized fees.
Stemming from the Ethereum -based platform Uniswap was bitcoin proponent Brad Mills complaining about the dex fees.
The swap ultimately fails as moreover in some cases people have had to eat the associated onchain trading fee. About paying a $120 dex trading fee, on January 7, 2021, the bitcoin pundit Brad Mills tweeted.
Mills then said, to use Uniswap on Ethereum, just a casual $120 fee. Sarcastically he added, that the future of finance for the unbanked is defi. Over the Uniswap fees I just paid, he is gonna go cry now was what a few hours ago, one individual wrote.
One user explained that the fees on Uniswap are insane in another tweet on Friday. Uniswap will plateau as a decentralised exchange as they need to figure out a way to curb this was what he added while sharing a picture of the Uniswap fees thereby on Friday.
That transaction should settle in 12 minutes, the screenshot shows that the slowest transaction will cost $40 in ether fees. Costing over $58 to interact with Uniswap, is a medium-speed transaction that will settle in a single minute. Just for the fee moreover, the fastest confirmation time of under 30 seconds will set a trader back $100. On Friday afternoon another person tweeted that these fees are Oh my God insane. Dex fees are too high whereas another person complained and said they wanted to trade. The person then asked are there any alternatives as he wanted to start trading on Uniswap but he is not rich yet.
A great number of crypto community members shilled their own favourite blockchain with claims of lower fees as of course throughout all the discussion about the high dex fees. Many people believe the network will falter if fees are not improved in the near future despite Ethereum’s colossal lead in the decentralised finance space. Referring to both networks as antiquated tech, one person even compared the Ethereum network to BTC’s fee and transaction congestion issues.
Dubbed Green Eggs-n-Sam, ETH is the bitcoin of defi was the Twitter account explaining. It was observed to be practically unusable w/o that of a centralised layer 2, also the while superior solutions and then the off-ramps which now are appearing left and right as the old tech, just failed to scale >10 years, where fees are a joke, flawed incentives, also running on fumes of first-mover advantage. With 165 likes at the time of publication, the crypto proponent’s harsh criticism actually was a fairly popular tweet.