Elon Musk zeroes out on Dogecoin for Ether DEX fees

Share your love

The rates they are also present in blockchains and are sometimes very high. Thus, Elon Musk zeroes out on Dogecoin by those present in DEX from Ethereum. Since according to Musk, the same scare retail investors according Newton Gitonga and ZyCrypto.

Based on data from the digital asset data provider Kaiko, while the DEX volumes have continued to increase over the past year with a total volume of $ 8.4 billion at the time of reporting, the space is still plagued by high transaction fees on the Ehereum blockchain that only the whales or large investors.

Due to the problem of congestion and scalability, users are forced to part with an average of $ 100 in fees for each operation, which restricts the use of DEX for small traders.

“The average trade size for the other DEXs varies between 10k – 20k dollars per day, which is very large compared to centralized exchanges that normally have average trade sizes between 2k and 4k dollars. Large trades are likely due to Ethereum’s high transaction fees, preventing more retail merchants from using DEX, “noted Kaiko.

While the average trade size on DEX has increased in recent months, the actual number of trades has remained unchanged, which suggests that the participants are mostly whales.

While one can tell more about activity on a DEX based on daily volume, the chart below reveals that the Smaller DEX by the number of operations has the highest average trade size between 500k – $ 1 million even though DEX process less than 50,000 operations per day.

Read Also   The Ibex-35 opens in red after bad data from China

Despite the fact that Dogecoin’s transaction fees have risen sharply since December last year following a surge in the price of the coin, the fee is still largely lower, averaging $ 0.65 per transaction.

The developer team has also been working to lower fees even further by updating node operators following calls from Elon Musk and users of the resurgent cryptocurrency. In 2014, the tariff of 1 Doge per kilobyte to protect against chain scams. Currently, there are proposed changes to reduce the default fee rate to 0.001 Doge.

The meme coin remains a reference cryptocurrency for most businesses as they seek to adopt the asset as a form of payment for their cheap transaction fees. Companies and entities such as AMC, Dallas Mavericks, Ask The Doctor among others they are already accepting cryptocurrency.

Article Source

Share your love