What can you do about these gas charges? January 20th to 27th


This is a repost of the latest edition of Finance Redefined where Cointelegraph unpacks the latest developments in DeFi. The newsletter is sent to subscribers every Wednesday.

The decentralized funding was quite calm with regard to key fundamental developments and instead let prices do the talking. Many tokens accumulated, both popular and almost forgotten. Aside from a few hiccups due to the shaky Bitcoin (BTC) price trend, we’re still well into the DeFi season.

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Unfortunately, this price action means that using DeFi is next to impossible. Ethereum gas fees have been steadily hovering over 100 Gwei, which will seem like an incredibly large number to any veteran. While we’re not quite at the 300 Gwei seen by DeFi this summer, it’s worth noting that Ether (ETH) is also worth three to four times as much.

For a fun exercise, put your wallet address in fee.wtf and be amazed at how much money you’ve thrown on miners.

Average gas prices in 2021. Source: Etherscan.

The good old days when you could safely send a transaction for 2 Gwei seem so far away now. Until we get back to that point, fees remain a serious deal breaker for mere mortals who cannot do business for tens of thousands of dollars at a time.

With DeFi, you can’t afford to be stingy either. A transaction sent to Uniswap or another decentralized exchange needs to be confirmed fairly quickly, otherwise it can fail due to slip protection or other restrictions. A failed transaction stings twice: not only does it not do what you want, it also uses up the gas fee.

Unfortunately, there isn’t much you can do about it. However, I wrote an article this week on how to find the right time to send a transaction.

Choosing the right time is probably the most easily accessible trick. To completely fix the problem, Ethereum and its liquidity must be abandoned. I suggest you still explore the various non-Ethereum options available, including layer two chains and external blockchains. Chances are you’ll find what you need provided you’re not a sophisticated ape chasing Andre Cronje’s wallet for his latest unpublished project.