In a major development in cryptocurrency, Osmosis has seen impressive trading activity since the start of the month. It has witnessed over $282 million in trades across 2.5 million transactions through its front-end platform. This significant volume highlights the platform’s growing popularity and efficiency.
Osmosis had over $282M in trades since the start of the month across 2.5 Million txns via the @osmosiszone front-end.
Do you know how much these transactions would cost if it were on #ETH? Over $50 Million in fees, which is about 20% of the initial volume 😂
Let that sink in pic.twitter.com/Bq9SRca4Tk
— Blanco ⚡️ (@wassieblanca) July 12, 2024
Osmosis Saves Traders $50M in Fees Compared to Ethereum
To bring this into context, if these transactions had been made on the Ethereum blockchain, the costs would have been much higher. The fees of such a large number of transactions on Ethereum would reach $50 million. This represents about 20% trading volume, showing the difference in cost between the two trading platforms.
Due to low fees that they charge, Osmosis is suitable for traders who would wish to incur low costs. Unfortunately, such a feature is not entirely evident in normal online learning platforms. However, it has emerged as a key strength of Osmosis for cost-cutting and retaining more of the trading capital. Ethereum, on the other hand, has higher transaction fees. As a result, this fee may reduce the profitability of the smart contract which may be affected by high network traffic.
Cheaper Fees Make Osmosis Attractive for Traders and Investors
Moreover, significant savings achieved on the fees of Osmosis also points towards a richer trend within the crypto community towards affordable and less costly means for trading. When DeFi will progress further, the more effective and cheaper platforms will definitely attract greater attention.
Given that Osmosis managed to handle such a large numerosity of transactions with fairly low charges, it is feasible to envisage Osmosis as a contender for the larger DeFi space. Osmosis’ trading environment is cheaper than that of Ethereum, which is why the project is trying to present itself as a better solution for traders and investors. This efficiency not only enriches individual users’ experiences but also helps to expand and develop the entire DeFi ecosystem.