Ethereum is posting another period of increased gas fees, an issue that has long been pestering the community, and prompted people to seek an answer to the question when they can use Ethereum at the lowest possible price.
The price of gas fees has now increased 20% in the past 24 hours, with transaction fees sitting at $17.67 at time of reporting.
The reason behind this sudden increase in gas prices is the return of DeFi projects which have started executing smart contracts and, as a result, driving the fees up. Some have reported that fees have reached $1,000 in certain cases.
According to Twitter user Olive Allen, in one instance, there was a $5,000 fee applied to bid on Rarible. While consumers have been posting humorous tweets about the current issue with fees, none of them were too happy with what was happening.
Decentralized exchanges hit as well
Even through decentralized exchanges, fees have been going up, now asking for anything between $40 and $75, and above. Consumers have kept sharing such instances of disproportionately high fees throughout the past 24 hours and continue to do so.
Congestion is the main issue with Ethereum, something that the new Eth2 protocol will slowly try to address. Yet, it's not the only cryptocurrency to suffer from the issue, even Bitcoin has started stacking up fees. Although BTC only asks for $14 or slightly higher – for now. Ethereum recently ranked as the third-largest network in terms of capitalization.
Most people are now looking into second-layer scaling solutions as a way to navigate their funds without footing hefty fees.