ETH gas prices reach All time High, time for change ?

From the past few days have soared to a never before seen levels, while Ethereum prices have reached a 2 year high of $470 as of this writing.

The DeFi yield farming has created a new age tulip-style frenzy in 2020 driven by fears of the pandemic induced job and business income losses while at the same time, bank savings interest rates at an all time low in major parts of the developed world.

However this thirst for yield is getting too expensive that a transaction fees is taking out a significant part of the proceeds to be accounted as another minor transaction itself.

Some Yield farming sites are offering a ridiculously high amount of Average Percentage Yield (APY) deriving criticsm from major Crypto OG's including ETH founder Vitalik Buterin himself.

It is advised to be mindful of both the practicality of these offers which are quite likely untested and haven't proven their long term sustainability while observing the running gas fee at websites like ETH gas station.

According to Eric Voorhees and Andreas Antonopolous, the complete migration of Ethereum from the current Proof-of-work to Proof-of-Stake could take upto 2 years from now, hence it is unlikely the markets will keep paying the absurd amount of fees till the migration is complete.

The present fees is only beneficial to miners who process and validate ETH transactions while others take the toll. Competing DeFi products and decentralized applications (DApps) from other chains will soon garner significant market share as the customer expectations shifts towards a hassle free and low fee experiences.

To name a few chains Tron, Cosmos based (E.g. Kava), Fantom (FTM) based DeFi products are gearing up to offer stiff competition to ETH based products.

What do you think is the next evolution of DeFi products ? Do you think any existing platforms will dominate the scene ? Let me know in the 'Comments' section below.
Thanks for your time.


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Disclaimer: The information provided in this article/blog post should NOT be considered as investment advice. I am not an investment advisor and therefore do not offer individual financial advice. Please do your own research before investing.