{"id":362563,"date":"2021-11-05T01:05:00","date_gmt":"2021-11-04T22:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/layer-2-and-multi-chain-defi-platforms-see-record-inflows-as-ethereum-fees-soar\/"},"modified":"2021-11-05T01:05:00","modified_gmt":"2021-11-04T22:05:00","slug":"layer-2-and-multi-chain-defi-platforms-see-record-inflows-as-ethereum-fees-soar","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/layer-2-and-multi-chain-defi-platforms-see-record-inflows-as-ethereum-fees-soar\/","title":{"rendered":"# Layer-2 and multi-chain DeFi platforms see record inflows as Ethereum fees soar"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a381d12dbe74\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a381d12dbe74\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/layer-2-and-multi-chain-defi-platforms-see-record-inflows-as-ethereum-fees-soar\/#Users_migrate_to_low_fee_networks\" >Users migrate to low fee networks<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Layer-2 and multi-chain DeFi platforms see record inflows as Ethereum fees soar <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>High transaction fees have been a persistent thorn in the side of investors and blockchain projects since at least 2014 when Ethereum Network co-creator Vitalik Buterin stated in reference to Bitcoin, \u201cThe \u2018Internet of Money\u2019 should not cost $0.05 per transaction. It&#8217;s kind of absurd.\u201d\u00a0<\/p>\n<p>Fast forward to November 2021 and the simple act of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roving a token so that it can be transacted on Uniswap can cost as much as $50 worth in Ether (ETH)\u00a0\u00a0depending on the time of day. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/a7b47255-03a0-44dc-9e74-753a7a3bb129.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Average Ethereum gas cost. Source: Etherscan<\/em><\/figcaption><\/figure>\n<p>Even layer-2 solutions, which were billed as the protocols that would help solve the fee issue, have been unable to escape the high-fee curse of congested networks as new users onboard into the cryptocurrency ecosystem by the day. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">isnt arbitrum supposed to be cheap lol what a joke <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/v839tZ4nch\">pic.twitter.com\/v839tZ4nch<\/a><\/p>\n<p>\u2014 satsdart  (@satsdart) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/satsdart\/status\/1455646425333780498?ref_src=twsrc%5Etfw\">November 2, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Users_migrate_to_low_fee_networks\"><\/span>Users migrate to low fee networks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As a result of persistently high Ethereum fees, a growing number of users are bridging assets to lower-cost Ethereum Virtual Machine (EVM) compatible networks. Data from Dune Analytics shows that the total value locked on bridge protocols has been on the uptrend since the beginning of October. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/77ea77bc-bae5-4b31-b0d6-b6bbe6db20ff.png\"><figcaption style=\"text-align: center;\"><em>Total value locked on Ethereum bridges. Source: Dune Analytics<\/em><\/figcaption><\/figure>\n<p>As shown on the chart above, the Ronin bridge has become one of the more popular protocols over the past month thanks in large part to Axie Infinity users migrating assets to the lower fee platform.<\/p>\n<p>The popularity of Axie Infinity is shown in the following chart from Token Terminal displaying protocol revenue. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/dc27da51-d7e7-4473-94dd-e821db3fd8aa.png\"><figcaption style=\"text-align: center;\"><em>Top projects by cumulative protocol revenue in the past 7 days. Source: Token Terminal<\/em><\/figcaption><\/figure>\n<p><strong><em>Related: <\/em><\/strong><strong><em>How to take full advantage of the benefits of DeFi and increase high-interest savings<\/em><\/strong><\/p>\n<p>The third-ranked protocol by revenue is PancakeSwap (CAKE), a high TVL DeFi protocol on the Binance Smart Chain that offers significantly lower transaction fees than those found on Ethereum. <\/p>\n<p>A majority of the top gainers in terms of TVL over the past week are also protocols that are either found on Ethereum competitors or offer multi-chain functionality in side-chain environments. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/c2c15014-54a6-4a98-b4ca-e160c644af5d.png\"><figcaption style=\"text-align: center;\"><em>Top projects by TVL trend in the past 7 days. Source: Token Terminal<\/em><\/figcaption><\/figure>\n<p>Avalanche, Abracadabra.money, Yield Yak, Benqi, SpookySwap and Loopring are also multi-chain or Ethereum side-chain compatible networks which have seen a significant bump in TVL in the last 7 day. <\/p>\n<p>Unless something can be done in the near term about the high transaction cost on the Ethereum network, the trend of liquidity being migrated to other blockchains is likely to continue. <\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/layer-2-and-multi-chain-defi-platforms-see-record-inflows-as-ethereum-fees-soar\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Layer-2 and multi-chain DeFi platforms see record inflows as Ethereum fees soar &#8221; High transaction fees have been a persistent thorn in the side of investors and blockchain projects since at least 2014 when Ethereum Network co-creator Vitalik Buterin stated in reference to Bitcoin, \u201cThe \u2018Internet of Money\u2019 should not cost $0.05 per transaction&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":362564,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTEvNjBlNjA1OGQtMjRmNy00YjBjLTljYzAtZDYwYjk4OTJiOTEzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,75014,74863,74860,74868,74891,74880,88700,72927,73785],"class_list":["post-362563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-binance","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-defi","tag-ethereum","tag-transactions","tag-uniswap","tag-fees","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/362563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=362563"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/362563\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/362564"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=362563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=362563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=362563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}