Thanks to NFT and DeFi, transaction fees in Ethereum network have risen to unprecedented levels

For several days now, many Ethereum users have been complaining about ridiculously high transaction fees, making the network almost unusable for them. Due to the relentless hype in the market for unmistakable tokens (NFT) and DeFi, fees at Ethereum are now insane, for example, processing a transaction on Uniswap costs almost $ 500.

Users complain about the increase in transaction fees in Ethereum

As can be seen, the transaction fee for ERC-20 token transfers increased to $ 147.32 with low priority and $ 148.87 with high priority. A token swap would cost about $ 458 and we would pay $ 400 to add / remove LPs from the largest decentralized exchange, Uniswap.

The increase in transaction fees in the ETH network is due to the transaction burden on the network, which is likely to be accelerated by the rapidly growing number of trades and activities in the DeFi and NFT markets. As a result, the network is completely unusable for many Ethereum small users, as it is not advantageous to pay more for fees only for processing small transactions.

Due to the increase in the value of transaction fees on Ethereum, a significant number of ETHs are now burned every minute. Data from Ultrasound Money showed that the ETH burning rate also increased to 9.23 ETH per minute, resulting in the burning of more than 13,398 ETH in the last 24 hours.

Although EIP-1559 does not mean that ETH is deflationary, it helps reduce coin inflation. Meanwhile, ETH is on an upward trend despite rising fees.

Cardano runs an ERC20 converter on testnet to build a bridge with Ethereum