DEXs becoming unusable? How to navigate record gas fees ahead of Eth2 – Cointelegraph

DEXs becoming unusable? How to navigate record gas fees ahead of Eth2 – Cointelegraph

While Bitcoin (BTC) has been in the spotlight since the start of the year, and even more so given the recent $1.5-billion Tesla purchase, Ether has not been lagging behind. Ether (ETH) is currently sitting at $1,800, and its network has now processed over 1 billion transactions, mostly on the back of the DeFi sector and also due to growing institutional engagement

According to Lanre Jonathan Ige, research associate at 21Shares — a European issuer of crypto Exchange Traded Products — “Investors understand that Bitcoin is part of a wider asset class and are now attempting to diversify past Bitcoin.” He further told Cointelegraph that for institutional investors, “the prospect of a pure technology play within the industry is an interesting one and the reason why Ethereum is increasingly compelling.”

As decentralized finance continues to grow, the products built are beginning to reach widespread use. Currently, there is over $47 billion locked in DeFi liquidity protocols. The volume on decentralized exchanges has also grown substantially in the last few months, reaching more than $55 billion across all Ethereum-based decentralized exchanges.

As volume on Ethereum-based decentralized exchanges and on-chain transactions continue to grow, the Ethereum blockchain has become heavily overloaded, demanding a $10 fee for a simple transaction at times. Since trades on decentralized exchanges are executed on the blockchain, swaps on exchanges, such as Uniswap, can cost over $100 at times.
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