Finance Redefined: What can you do about those gas fees? Jan. 20–27 – Cointelegraph

Finance Redefined: What can you do about those gas fees? Jan. 20–27 – Cointelegraph

This is a repost of Finance Redefined’s latest installment, where Cointelegraph unpacks the latest developments in DeFi. The newsletter is delivered to subscribers every Wednesday.

Decentralized finance was reasonably quiet in terms of major fundamental developments, instead letting prices do the talking. Many tokens rallied, both the popular and the almost forgotten. Save for a few hiccups due to Bitcoin’s (BTC) shaky price action, we are still well into DeFi season.

This price action, unfortunately, means that using DeFi is pretty much impossible. Ethereum gas fees steadily hovered above 100 Gwei, which to any veteran will seem like an impossibly large number. While we’re not quite at the 300 Gwei seen during the summer of DeFi, it’s worth remembering that Ether (ETH) is also worth about three to four times as much.

For a fun exercise, try inputting your wallet address in fees.wtf and marvel at just how much money you threw to miners.

Average gas prices in 2021. Source: Etherscan.

The good old days when you could confidently send a transaction for 2 Gwei seem so far away now. Until we get back to that point, fees will remain a serious deal-breaker for mere mortals who can’t transact with tens of thousands of dollars at a time.

With DeFi, you also can’t really afford to be stingy. A transaction sent to Uniswap or another decentralized exchange has to be confirmed pretty quickly, or it’s likely to
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