Since early 2020, the decentralized financing industry has gained enormous attention and adoption from investors. The decentralized finance (DeFi) industry has brought in a lot of cutting-edge innovation and high yielding opportunities. These opportunities provided by the DeFi industry are very lucrative and profitable for cryptocurrency holders.
However, with the amount of adoption and growth in the industry, it is also facing problems with respect to high gas fees for transactions. According to the reports, the current gas fees are almost touching all-time highs for the entire decentralized finance (DeFi) sector.
The high-fees are one of the biggest challenges that the DeFi industry is facing at the moment. Unfortunately, the industry is yet to come up with a second-layer solution to control this abnormality. If it is not done, then the small investors will not be able to access the industry. The high fees currently being experienced by the DeFi industry is going to push small investors away from its platform.
The high-fees due to the decentralized finance (DeFi) sector have already shown its negative results on the Ethereum wallets of the investors. The investors trying to approve new tokens on the decentralized finance (DeFi) platform or trying to open a trade on Uniswap are already facing this problem.
One of the on-chain data analyzing firms Etherscan has recently shared the data it has collected against the gas prices. The firm has revealed that despite the surge in the gas fees, still, they have not crossed the all-time high gas prices that were experienced in 2020. The firm informed that the sector has been experiencing a surge in gas fees since December of 2020.
The firm has revealed that the surge in the gas fees for the DeFi industry is also coinciding with the high fees being experienced with the Ethereum (ETH) platform.
Etherescan also ran an analysis on the transaction costs for each and every time zone. The firm revealed that the cost of transactions being experienced during the United States trading sessions is comparable to that of trading sessions in Asia.
This goes onto show that the gas fees are going up and surging due to an increase in trading volumes throughout the day.
However, the whales are gaining a lot of benefit from the surges in transaction fees, which are mainly triggered by the DeFi investors. The analysis run by the platform shows that the increase in fees is correlated with the transactions that were made in 2020 from wallets with at least 20 or more ETH.
It has been revealed that the gas fees are not based on the size of transactions but are solely dependent on the interaction costs with smart contracts. Therefore, this situation is proving to be very beneficial for the Ethereum (ETH) whales as they can make transactions during surge times and not bear much impact on their wallets.