Exchange temporarily halts Ether withdrawals as gas fees hit new highs

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Japanese cryptocurrency change Liquid has briefly disabled Ether (ETH) withdrawals because the altcoin hits new all-time highs.

In line with a Feb. 4 announcement, Liquid has halted withdrawals for ETH and a few ERC-20 tokens due to an enormous spike in transaction prices, or gasoline charges. “Service can be resumed as soon as gasoline charges return to regular ranges. All different crypto currencies are working as per regular,” Liquid stated.

On Feb. 4, ETH worth posted one other excessive of above $1,600, following propelled development of almost 20% over the previous seven days. The rising worth has been steadily driving transaction prices increased, hitting new historic highs.

In line with knowledge from YCharts, gasoline charges reached a median $17.5 per transaction on Feb. 3.

Ethereum Common Transaction Price. Supply: YCharts

As beforehand reported, gasoline charges began to see significant growth in early January 2021 when Ethereum broke its previous record of above $1,400.

The newest spike in gasoline charges has had an enormous influence on a variety of decentralized finance tasks, with some DeFi transaction charges surging above a$1,000. Charges on main decentralized exchanges like Uniswap and SushiSwap surged to irregular ranges of between $40 and $75. In search of decrease charges, DeFi customers have reportedly turned into Ethereum alternatives like Flamingo.

Kain Warwick, founder of Ethereum-based artificial asset issuance platform Synthetix, expressed confidence that surging ETH charges will even drive transaction volumes increased:

“Clearly we have to see what the person behaviour is when charges are usually not subsidised by I strongly suspect that the tx quantity will solely enhance from right here. Proper now you possibly can’t do a lot however sit and mash the mint button.”

At publishing time, Ether transaction volumes quantity to $44 billion, up from $37 billion on Jan. 28. The second-largest cryptocurrency is buying and selling at $1,639, up 6.3% over the previous 24 hours on the time of writing.