As covered in a previous article on Crypto.IQ, the Decentralized Finance (DeFi) yield farming frenzy is bringing an explosion of activity to the Ethereum (ETH) network. However, Ethereum’s (ETH) lack of scalability is becoming an issue, and transaction fees have risen to over $1. 

Historically Ethereum (ETH) transaction fees averaged $0.10 or less, but now they have risen by over an order of magnitude to over $1.10. This makes using Ethereum (ETH) prohibitively expensive, especially when considering that active Ethereum (ETH) users can send numerous transactions every day. 

Further, transaction fees on the Ethereum (ETH) network have been consistently rising since the beginning of April, and it is likely that fees will rise even further. In fact, it seems quite likely that transaction fees will rise to several dollars in the coming months.

Essentially, Ethereum (ETH) is not able to scale with the DeFi frenzy, and it seems a scalability crisis is in the offing. 

Considering this, the Ethereum (ETH) developers need to quickly deploy Ethereum 2.0, which promises massively increased scalability, otherwise transaction fees may become so expensive at some point in the coming year that people stop using Ethereum (ETH) and begin looking to use other blockchains. 

Indeed, although this is a scalability crisis for Ethereum (ETH), it is a golden opportunity for other blockchains, since DeFi projects may begin migrating to other blockchains like EOS, Tron (TRX), or Cardano (ADA) in order to avoid excessive transaction fees.