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Will Gas Fees Stop The Bullrun? - CRYPTO FRIDAY
Hey DEFI TIMES community,
Gas prices have risen to highs we have never seen before. It currently costs over $10 to send a simple ETH transaction within 30 seconds.
The reason is simple: There's a lot of demand for Ethereum based applications.
Today, I want to point out the positive sides of high gas prices. High gas prices basically mean that we have reached product-market fit. We built applications that people want to use. We didn't have them in 2017 when ICOs were still a thing.
The desperate need for scaling solutions will also increase the efforts of developers to build them. When gas prices were still low, nobody was working on L2 solutions because nobody would use them. Today, things changed. People want to use layer two solutions.
We first need to know what it is like to pay tens of dollars per transaction in order to build alternatives. I believe that we will see the transaction volume of L2 exchanges like Loopring increase significantly in the coming weeks and months.
Infrastructure is not built until there is a demand for it. In fact, if you build stuff before there is demand, you risk that the demand will never come.
Now there is a demand for scaling solutions, and scaling solutions will follow soon. Quite frankly, they are already here: Rollups, which is what we are going to talk about on Sunday =)
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Balancer released its design for the V2 upgrade. It will include:
- Protocol Vault
- Gas efficiency
- Customizable AMM logic
- Asset Managers
- Resilient oracles
- Protocol fee
New Yearn Protocol Funding
Yearn has passed a proposal to increase the YFI supply by 6,666 tokens. ⅓ of it will go to the team members as compensation, and ⅔ will go to the treasury.
Bitwise adds AAVE and UNI
Bitwise has added AAVE and UNI tokens to its crypto top ten index fund. We see more and more institutional investors going into DeFi. Bullish.
Grayscale opens ETH trust
Grayscale trusts are now open for investors. The claim:
Grayscale Ethereum Trust is solely and passively invested in Ethereum, enabling investors to gain exposure to ETH in the form of a security while avoiding the challenges of buying, storing, and safekeeping ETH directly.
Reddit works with Ethereum foundation
Reddit will work together with the Ethereum foundation to build more scalability solutions. Their goal is to establish a community points system on their Reddit platform.
All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.