The decentralized finance (DeFi) had enjoyed a red-hot summer in which users invested billions of dollars into non-custodial financial offerings. The DeFi boom drove a massive wave of activity on the Ethereum blockchain, which at courses examined the technical boundaries of the network.
However, in the last few months, the DeFi bubble is deflating at rapid speed. According to DeFi Pulse Data, the total value locked (TVL) in the DeFi sector has plummeted by almost $1.5 billion. Following the downward trend of the DeFi sphere, the average transaction cost over the Ethereum network has also plummeted by more than 80% from $11.61 to $2.09 as of October 4.
Crypto experts blame the hike in Ethereum transaction fees on the craze within the DeFi ecosystem, which has abruptly grown into an $11 billion industry. Josh Olszewicz said, “ETH fees are way down suggesting the DeFi madness has abated for now.”
As Investors Set Eye on Bitcoin, Network Transaction Cost Surges
Apparently, Bitcoin proceeds to catch the attention as it had burst 2019 high. The sharp downturn of the DeFi sphere suggests that investor interest has shifted back to Bitcoin once again. Surge activities on the network have pushed Bitcoin transaction fees. As reported earlier, the average transaction gas fee on the network is now $13.
Over the past few days, highly elevated network congestion has been observed in the Bitcoin blockchain that leads to longer processing times, with several unconfirmed transactions. Miners prioritize the users who are willing to pay a premium in order to process Bitcoin transactions.
In the past month alone, Bitcoin’s price had increased by almost $3,500 and surpassed a high of $13,000. Currently, it is trading at $14,304. On the other side, Ethereum also jumps by more than 5% to hit the $400 barrier.