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Layer-2 and multi-chain DeFi platforms see record inflows as Ethereum fees soar

Published 11/04/2021, 06:05 PM
Updated 11/04/2021, 07:40 PM

High transaction fees have been a persistent thorn in the side of investors and blockchain projects since at least 2014 when Ethereum Network co-creator Vitalik Buterin stated in reference to Bitcoin, “The ‘Internet of Money’ should not cost $0.05 per transaction. It's kind of absurd.”

Fast forward to November 2021 and the simple act of approving a token so that it can be transacted on Uniswap can cost as much as $50 worth in Ether (ETH) depending on the time of day.

Average Ethereum gas cost. Source: Etherscan
Total value locked on Ethereum bridges. Source: Dune Analytics
Top projects by cumulative protocol revenue in the past 7 days. Source: Token Terminal
Top projects by TVL trend in the past 7 days. Source: Token Terminal

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