Japan-based cryptocurrency exchange Liquid has temporarily suspended withdrawals for Ethereum (ETH) and ERC-20 tokens after the increase in average ETH gas fees on the Ethereum network.
High transaction fees
Liquid announced the suspension news on its official Twitter account on Thursday, February 4, 2021. According to data from YCharts, the gas fee reached almost $ 17.50 on February 3rd, causing the exchange to suspend withdrawals for ETH and ERC-20 tokens.
However, the crypto exchange stated that when transaction fees fall, normal services will continue on the platform.
The current gas fee has surpassed the previous all-time high (ATH) of $ 17.43 reached in January 2021. However, data from YCharts revealed that the average transaction fee reached a new ATH of $ 17.67 on February 2, 2020.
High Ethereum transaction fees come in the middle of the ETH price rally. After struggling to break the 2017 ATH, the price of ETH finally made its breakthrough and hit several peaks, ultimately reaching a new ATH of almost $ 1,700. At the time of writing, the ETH price dropped slightly from ATH and was trading at $ 1,658.31.
Apart from Ethereum, fees for some decentralized finance (DeFi) projects have also skyrocketed. Popular crypto investor Davis Lark announced that he paid $ 50 for gas fees on the major DeFi platform Uniswap.
Meanwhile, high ETH gas fees remain a concern for ordinary traders as the high transaction cost ultimately affects their profits.