"The ghost chain reckoning is coming. There is well over $50bn in market cap value for chains no one uses. They will all be usurped by DeFi apps with actual use by the end of this market cycle."
Transaction fees may act as a catalyst that caps the ongoing DeFi rally according to one prominent on-chain analyst.
Ethereum's transaction fee debacle could put an end to the ongoing DeFi boom.
According to Jacob Franek, a co-founder of blockchain data firm Coin Metrics, high Ethereum transaction fees could be a stop to the bull run.
Franek is responding to the record transaction fees currently being incurred by Ethereum users; ETH Gas Station reports that the cost of gas has reached 300 Gwei, 3,000 percent higher than this metric was at the start of the year.
"Gas prices will put a hard cap on this DeFi bull run. To be expected and probably a good thing High gas likely new normal."
Gas prices will put a hard cap on this DeFi bull run.
He is referencing how many users get crowded out, meaning they cannot invest or participate in certain Ethereum applications, due to the high transaction fees.
Small-scale DeFi users are also priced entirely out of the DeFi game at 300 Gwei as it costs $10 to trade on Uniswap, and $20+ to do anything notable on/with any of the top DeFi protocols.
While Franek and many others acknowledge the risks high transaction fees pose to the growth of Ethereum and its respective applications, there are solutions on their way.
Data analyst: Ethereum transaction fees will put a "hard cap" on DeFi bull run
pubblicato su Aug 14, 2020
by Cryptoslate | pubblicato su Coinage
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