DeFi users flock to Flamingo (FLM) to escape high Ethereum gas fees

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Decentralized finance is rapidly becoming a cornerstone of the cryptocurrency sector but the ecosystem has become increasingly centralized on the Ethereum network and this is causing the entire sector to be plagued by high gas fees and slow transaction confirmations.

Average Ethereum gas price. Source: Etherscan

This explosive rise in gas fees is leading users to look for other options and one alternative is Flamingo finance. The protocol is built on the NEO blockchain and designed with a focus on governance and interoperability.

Interoperability has also emerged as a prominent issue in the crypto sector as separate blockchains and isolated DeFi platforms need a way to communicate with each other and transact across protocols.

Value pegging when dealing with cross-chain assets has proven a challenge for protocols thus far and has recently become a focus of Flamingo developers.

Flamingo (FLM) price recently set a new high for 2021 as the DeFi protocol saw a surge in trading volume on Feb. 1 that helped its token double in value overnight.

At the start of 2021, FLM price was trading at $0.12 after falling from its previous all-time high of $1.59 in September 2020 at the tail end of the summer of DeFi. Since bottoming out in January, the price has steadily increased to its current value of $0.35.

FLM/USDT 4-hour chart. Source: TradingView

Three reasons for the recent 200% increase in the price of FLM include the recent expansion of governance features, having the first-mover advantage of DeFi on NEO blockchain, and record-high trading volume.