The transaction fees of the second-largest cryptocurrency by market cap, Ethereum [ETH] have soared to new all-time highs for the 2nd time in three weeks.
As for today, average & median transaction fees have skyrocketed to new record highs of $10.33 USD & $5.68 USD, respectively.
Average fees reached record highs of $6.04 USD earlier on 13th Aug., as reported earlier, while median fees stayed slightly below their all-time highs of $3.03 USD.
Steep network fees are a “double-edged sword” for Ethereum, said Wilson Withiam, Ethereum analyst at Messari.“They can keep off potential users,” he added. But rising fees also signify “an increase in network utilization & demand for block space.”
As the fees increase, entities liable for large on-chain transaction volume are looking for new techniques to scale back pressure on the network.
The leading stablecoin Tether [USDT], the 2nd largest client of Ethereum gas fees, will “investigate” the addition of an Ethereum-scaling technique referred as zk-rollups that permits transactions to be batched off-chain & reduce transaction pressure on the network.
“The idea behind zk-rollups is aggregating multiple operations [transfers, smart contract calls, …] into one single L1 transaction that ‘compress’ all the underlying transactions,” as per Tether CTO Paolo Ardoino. “Zk-rollups are at the instant the foremost comprehensive L2 solution for the Ethereum scalability problem.”
As transaction fees still increase, largely caused by the continued explosion of DeFi, this is often causing DeFi to “slowly become a game reserved for the wealthy,” Withiam added.