#GasFeeImpact

Gas fees on the Ethereum network continue to be a critical factor for DeFi traders and developers. In recent days, increased on-chain activity has caused fees to rise significantly, making some smaller operations unviable. For small investors, this extra cost can mean the difference between profit and loss, especially in low-volume trades.

The impact of fees is also reflected in the use of secondary layers, such as Arbitrum and Optimism, which have seen increased adoption. Many projects and users are migrating to these solutions to avoid high costs, which can influence the liquidity dynamics within the ecosystem.

In addition, competition between networks such as Solana and Avalanche is putting pressure on Ethereum to seek continuous improvements. The upcoming Dencun upgrade could provide relief by reducing transaction costs.

#GasFeeImpact