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BlockFi Removes Free Withdrawals

The high Ethereum gas fees is becoming a bottleneck for new users.

Gas fees is frustrating for any crypto user whether an individual or institution. 

As a result, on Wednesday, the crypto lending platform, BlockFi announced changes in its withdrawal fee structure “due to the increasing transaction costs on the Ethereum network.” 

The changes are not limited to Ethereum.

Chainlink, Pax Gold, Uniswap, and Basic Attention Token also run on Ethereum’s network, so their fees were also increased.

The fees has been increased for all these crypto including Ethereum.

But, users will continue to get one free withdrawal per month for bitcoin, Litecoin, and Stablecoins (USDC, GUSD, PAX, DAI, BUSD, USDT). After using the free withdrawal, subsequent withdrawals will have a fee that varies by coin.

The company added that Stablecoin withdrawals are still free through an ACH (Automatic Clearing House) bank transfer.

BlockFi maintains that it does not intend to profit from the gas fees.

Ethereum is notorious for high gas fees since the bull run began in 2020.

At the current price of $4280 on Binance, the Ethereum withdrawal fee would be $64.2, which is quite high.

This is also the reason why new users refrain from interacting with Ethereum’s base layer. In the past 10 days, layer-2 protocols amassed around $1 billion in Value Locked.

Right now, the industry Total Value Locked of layer-2 protocols is over $6.5 billion, as per L2Beat.

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