Ethereum’s gas fees are again spiking to record highs, rendering many decentralized finance protocols unusable for casual investors.
After increasing roughly 20% in the last 24 hours, average Ethereum transaction fees are now sitting at a record $17.67.
With many DeFi projects requiring the execution of complex smart contracts, there are reports fees associated with using protocols requiring complicated transactions now exceed $1,000. Amid the chaos, Twitter-user “Olive Allen” reported estimated gas fees of nearly $5,000 to accept a bid on Rarible.
— Olive Allen (@IamOliveAllen) February 3, 2021
When Cointelegraph checked earlier today a single large transaction on Synthetix was estimated at above $1,100 – however the protocol is undergoing an upgrade which could affect estimates.
But even simple swaps using decentralized exchanges Uniswap and SushiSwap cost from $40 to $75.
Tried a $75 swap on sushi earlier. Gas fees were $74 on sushi swap and $37 on uniswap. Zero logical sense to even swap anything with fees like that.
— Kole Pfeiffer (@6pointd) February 4, 2021
Responding to the high fees, ConsensusRough podcast co-host ‘Checkmate’ warned DeFi users to consider the expense involved in executing smart contracts before investing.
He shared the screenshot of a user that purports to show estimated gas fees exceeding the price of