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Binance CEO criticizes high fees for Ethereum and says exchanges need to review withdrawal fees

September 2, 2020

In a recent tweet, Changpeng Zhao, CEO of Binance, He complained about the increase in gas fees for transactions on the Ethereum network and for ERC20 tokens.

Due to the increase in DeFi activities, transactions with Ether were at a high level. CZ says so in its tweet Binance loses between $ 10 and $ 20 for every withdrawal a customer makes through the Ethereum network, and for him, sooner or later, all exchanges will have to review their withdrawal fees.

This whole scenario harks back to the 2017 rally when Bitcoin, and with it all cryptocurrencies, were worth high and transaction fees were actually very high. The gas price is a general indicator of the average commission prices, which vary depending on the transaction.

Binance CEO criticizes high fees for Ethereum and says exchanges need to review withdrawal feesBinance CEO criticizes high fees for Ethereum and says exchanges need to review withdrawal fees

Image: glass knot

The DeFi ecosystem is to blame for this

The only ones who benefit from the expensive network usage are ether miners. Data provider Glassnode reported that ether miners have earned more than $ 500,000 in commissions in the past hour, setting a new record. Compared to April, in August, miners earned 38 times the amount on transaction fees only.

The DeFi ecosystem and its protocols are driving all of this inflation in ether rates and making average transactions more expensive. Each DeFi token transaction costs an average of $ 10.

On average, A transfer with Ether costs $ 4However, at around $ 17, interacting with DeFi protocols is becoming more and more expensive, making it difficult for more users to interact with the DeFi ecosystem.

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