Another One Bites the Dust; Ethereum’s Insanely High Fees Force A Project to Shutdown
As average fees on the second-largest network continue to rise, Unite.Community kills its project.
Crazy high fees on the Ethereum network continue to price out smaller users. This time, a small social network project called Unite.Community has been the victim of this.
“We are unfortunately no longer actively developing Unite,” announced the project on Twitter this week. The project blamed the high fees for its shut down, which has been making it hard to make the project a reality.
“Gas prices mean the original idea for Unite isn't feasible and after several months of work and many conversations we've decided against building a social token platform on a L2.”
This isn’t the first time a project has shut down because of the extremely high fees of the Ethereum network.
Back in September, during the DeFi mania, which pushed the prices to even higher levels, Unilogin had to shut down because, at times, it was paying $130 to onboard new users.
Around the same time, Publish0x, a platform that paid writers in Ether tokens, had to first delay its payments and then switch to a monthly system of payment to avoid the high gas fees.
Interestingly, while in USD terms, the average transaction fees on the second-largest network continue to hit new highs, going to $24 earlier this week, in Ether terms, at 0.015 ETH, we are nowhere near the Sept. levels of over 0.03 ETH. Average gas prices that are currently keeping between 100-300 Gwie are also high but still far off of June 2020 levels when it was over 700 Gwei and above 535 Gwei in September.
These fees rise further when interacting with DeFi protocols and for faster transactions, which are making it harder for small users to actively use DeFi platforms. However, for miners, it means earning a fortune, already they have raked in $283 million in transaction fees in February so far. In January, Ethereum miners earned $325.45 million from transaction fees.
On Thursday, miners’ one-day revenue from fees was 28.45 million, hitting new records.