Elon Musk re-hyped Dogecoin as a response to high ETH fees

Elon Musk talks to Doge again in response to high ETH fees on DeFi. Gas fees on Ethereum make DeFi less accessible to new inventors.

Responding to a tweet about high transaction fees with Ethereum, Elon Musk simply called it “Dooooge” – promoting his favorite crypto, but also pointed out that it can be used to promote decentralized finance (DeFi) for all and more. The Tesla CEO often uses his Twitter handle to offer tips for crypto investors when the market is seeing a global boom, and this is another occasion where he has posted about the meme-based cryptocurrency Dogecoin. DeFi systems aim to provide an autonomous and decentralized alternative to financial services that are otherwise regulated by banks. Most DeFi applications are based on the Ethereum blockchain, where transaction fees are now quite high due to the cost of each ether (ETH) token.

Crypto news portal CoinDesk tweeted a story about the DeFi protocol being inaccessible to small investors due to Ethereum’s high transaction fees. Musk tweeted a one-word reply under this story, “Dooooge”, referring to his favorite cryptocurrency, Dogecoin.

According to a CoinDesk report, Dogecoin’s transaction fee, or “gas fee”, is quite low, averaging $0.65 per transaction (about Rs 50).

This is one reason why Musk referred to Dogecoin as “the people’s crypto” in early October.

Musk still believes that transaction fees for Dogecoin should be even lower for the cryptocurrency to be viable for day-to-day payments like movie ticket purchases.

Since executing each transaction on the Ethereum blockchain requires computational resources, they require transaction or “gas” fees. Gas prices are represented in “GVE”, which is itself a denomination of Ethereum – each GVE is equal to 0.000000001 Ether.

According to a blog on Ethereum’s official page, the gas fee helps keep the network safe from bad actors who may spam the network.

Due to the popularity of the blockchain network, which has become a concern for many, gas fees on Ethereum transactions have remained high for some time.

In November, beer company Budweiser launched a collection of non-fungible tokens (NFTs) built on Ethereum. Those who wish to purchase these digital collectibles from the beer brand will have to pay a gas fee of $75 (approximately Rs 5,600) to complete the purchase. Those who wish to purchase these digital collectibles from the beer brand will have to pay a gas fee of $75 (approximately Rs 5,600) to complete the purchase.