In the past 12 months, Ethereum-based decentralized financial (defi) solutions and decentralized exchange (dex) platforms have been very popular. In particular, the Dex application has seen huge demand. In the past 30 days, the transaction volume of dexs has reached 39 billion US dollars in swap transactions. However, one of the biggest problems faced by dex users is still the huge cost of interacting with platforms such as Uniswap and other dex platforms.
Ethereum’s decentralized trading platform sets a 30-day transaction volume record
Last year, Dex applications like Uniswap, 1inch, Sushiswap, 0x, Matcha, Kyber, etc. have become very popular platforms. Defi market integrator defipulse.com shows that today, the lock-in value of the defi platform exceeds $22 billion. The dex application and growing user base also represent a considerable amount of locked ether. On January 14, 2021, Dune Analytics statistics show that in the past month, the dex transaction volume reached 39.86 billion US dollars. In the past 7 days, swap transactions for Dex applications have reached 12 billion U.S. dollars, and in terms of volume, the highest ranking dexs application is Uniswap.
Uniswap’s trading volume is followed by Sushiswap, Curve, 0x and Balancer. According to current statistics, Uniswap and Sushiswap have billions of global trade volumes every week. Uniswap is the fourth largest defi application with a total lock-up value (TVL) of approximately US$2.77 billion. However, even though decentralized exchanges see large TVL balances and considerable transaction volume, the crypto community is confused about the fees associated with Ethereum-based dex applications.
Crypto users complain about large Dex fees
For example, the recently popular Bitcoin researcher and writer Hasu Said Some “defi projects generate cash flow from fees almost as large as the entire Bitcoin network.” In the past two weeks, many cryptocurrency supporters have been complaining about the huge fees associated with dex platforms such as Uniswap and Sushiswap.
In addition, in some cases, people have to bear related on-chain transaction fees, but The exchange ultimately failed. On January 7, 2021, Bitcoin expert Brad Mills (Brad Mills) Tweet Pay a transaction fee of $120.
Mills said: “Using Uniswap on Ethereum only pays a temporary fee of $120,”. “Ironically, Defi is the future of the unbanked financial industry.” A few hours ago, a person write: “I now cry for the Uniswap fee I just paid.”
In another tweet on Friday, a user explained: “The fees of Uniswap are crazy, they need to find a way to curb this, otherwise Uniswap will become a platform for decentralized exchanges,” he Added while sharing a picture of Friday’s Uniswap fee.
of Screenshots It is shown that the slowest transaction will cost an Ether fee of $40, and the transaction should be resolved within 12 minutes. A medium-speed transaction that can be completed in just one minute, and the cost of interacting with Uniswap exceeds $58. In addition, the fastest confirmation time (less than 30 seconds) will allow traders to only charge a $100 handling fee. “Oh, my goodness, these Uniswap fees are crazy…” Another Tweet On Friday afternoon. Another complained that they want to trade, but the dex fee is too high.
“I want to start trading on Uniswap, but I’m not rich yet, so… fees. Are there other options?” ask.
Of course, in all the discussions about high dex fees, many members of the crypto community claim their favorite blockchains at lower fees. Although Ethereum has a huge lead in the field of decentralized finance (defi), many people believe that if fees do not increase in the near future, the network will falter. Some people even compared the Ethereum network with BTC’s fees and transaction congestion issues, and referred to these two networks as outdated technologies.
“ETH is Defi’s Bitcoin,” Explanation The Twitter account is called “Green Eggs-n-Sam”. “Old technology cannot be extended beyond 10 years. Charges [are a] Just kidding, the incentives are flawed, relying on the first-mover advantage of the flue gas, there is actually no available w/oa centralized second layer, and there are always superior solutions and ramps in the left and right directions. The severe criticism from cryptocurrency supporters is actually quite popular tweets with 165 likes at the time of release.
What do you think of the recent dex transaction volume and the huge fees associated with the exchange of dex applications? Let us know your thoughts on this topic in the comments section below.
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