In the year 2020, the cryptocurrency and blockchain have seen significant amount of growth, development, and demand. The decentralized finance (defi) ecosystem has been in the highest of demands and for some exchanges, the user volume has increased to up to 800%. Moreover, the blockchain industry has now started to be accepted by the world as many European and Asian countries have started passing laws to recognize the global position of the crypto-economy.
Blockchain analysts and owners have speculated that the industry has constantly seen an upward trend to its value and demand, and the trend seems to be growing no matter how far the crypto-analysts look.
With such a high influx of the investors, the crypto-exchanges have been overwhelmed at the number of users that they are catering at present. However, so much growth underway, there are complications that have resulted in the users to grow concerned. One of them is the high network fees being imposed by one of the top cryptocurrencies; Ethereum. At present, the Ethereum miners have been reported to be mining around $700k to $850k per hour which is equals to around 700 gwei per transaction.
The year 2020 has seen a record-high figure in the Ethereum fees. Not just this, even the applications are known to provide defi loans, decentralized exchange swaps, and yield farming have also seen an increase in their fees.
This is when one of the top centralized exchanges known as Coinbase Pro had to make the harsh step of passing network fees down to their users. Therefore, Coinbase Pro officials made an announcement last Thursday, making it official that the users will now be incurring the network fees.
This news has created a ripple on the social media where many people have expressed their disappointment and anger against the statement. However, other big names in the cryptocurrency exchange industry have backed Coinbase Pro’s decision stating that any profitable company or industry would have done the same.
Other crypto-analysts and traders also back Coinbase Pro, stating that blockchain exchanges used to pay these network fees in the past but now, the situation has changed due to the network fees have grown very high and it would no longer be profitable for exchanges to pay these fees on behalf of the users.