A new report claims that the rising ETH fees have equaled the amount paid to US citizens as stimulus check.
As a result of the buying effects of the coronavirus pandemic, the U.S government gave its citizens stimulus checks to cover their daily expenses for the time being. A new report has claimed that the same amount given in the stimulus check was the same amount charged to cover a transaction on the Ethereum network due to rising ETH fees.
Experts have been able to point their fingers at the buzz generated by the success of the Decentralized Finance sector and the launch of a new Initial Coin Offering. Founder of Blockroots, a crypto trading firm, Josh Rager posted on Twitter that he noticed the $1,200 Ethereum transaction fee when he tried to purchase a DeFi token.
GAS fee on the Ethereum network briefly touched $1,200
It was later discovered that the coin Josh Rager tried to purchase had a small problem, which caused it to reject the GAS fee lower than its threshold. The GAS fee is the fee that is used to complete a transaction on the Ethereum network. Concerning the rising ETH fees, another crypto expert, Su Zhu, made a joke on Twitter when he stated that he has been paying more money for GAS on Ethereum.
According to some experts, the fees charged on the network have since dropped to around $200, which is still very high for a network that wants to be the global monetary system in the coming years.
Experts fault new DeFi projects on rising ETH fees
Presently, the fee to complete a transaction on the Ethereum network is now around $6 but could make a surge to around $200 depending on how fast the user wants his transaction to go through.
Experts have faulted the yield farming in the DeFi network as the major cause of the rising ETH fees. A particular project known as Yam tokens has seen farmers lock up money that can be borrowed at a significant interest rate. With this, the farmers are in line to receive interests up to around 1,000% per year.