Although the extreme prices of Ethereum are making it quite difficult for most of the retail investors to DeFi- most of the whales are unconcerned about it. The early part of last year saw the newly decentralized sector of finance receive quite a lot of attention since it brought in its state-of-the-art innovation. Also, most of the cryptocurrency holders were offered lucrative opportunities- which were quite a high yield.
How Are The Ethereum Prices Affecting DeFi?
Yet, these features won’t hold much ground as the record-high fees of ethereum have displayed that the sector might still be under duress. This means that most of the investors might still be moving away from a suitable solution at layer 2 from DeFi. Most of the investors, in fact, have been thinking of placing a Uniswap trade. Some of them have been playing with the idea of simply bringing in a completely different token on a DeFi platform. The main question here arises- did the investors not notice how such actions did put quite a stress on the Ethereum wallet?
There has been data brought on from Etherscan which highlights that the prices of gas haven’t yet reached as they were in the early part of 2020. Nonetheless, it seems to be going well above the record for last December. Interestingly, the Ether price surge does coincide with the increase in fees of gas.
When time zones are brought into account, one can stake a claim that the transaction cost which occurs during an Asian trading session will always be put on the same board as the US trading session. This is indicative of fees being a major factor in network usage. This also highlights the daily nature of the market for cryptocurrency, and how it affects DeFi.
