Whales profit as high Ethereum gas fees sideline retail DeFi investors

Since early 2020 the decentralized finance sector has been recieved a lot of attention due to its cutting-edge innovation and the lucrative high yield opportunities offered to cryptocurrency holders.

Despite these features, this week’s record-high gas fees show that the sector is still having growing pains and the absence of a suitable layer 2 solution could be pushing smaller investors away from DeFi.

Average gas price. Source: Etherscan
Average Ethereum fees by day in 2020. Source: Flipside Crypto
Number of transfers by wallet size in 2020. Source: Flipside Crypto