Following Uniswap’s UNI token launch, Ethereum transaction fees spiked to almost $1 million an hour
Hourly revenue of Ethereum miners has spiked, hitting a 5-year record, with fees currently yielding 2,275 ETH ($ 880K) per hour. The main reason is due to Uniswap’s distribution of the UNI governance token to former users of the decentralized exchange. Following UNI’s announcement, more than 70,000 users flocked to request free tokens, and gas prices soared beyond 700 Gwei. Besides, following that, Ethereum transaction fees spiked to almost $1 million an hour.
Ethereum miners’ hourly revenue | Source: Glassnode
Ethereum transaction fees spiked to almost $1 million an hour
According to Glassnode, Ethereum transaction fees went up to $ 1 million in an hour:
Meanwhile, the median #Ethereum gas price has massively spiked as well – reaching levels as high as 700 Gwei!
— glassnode (@glassnode) September 17, 2020
These numbers reduce the daily revenue miners earned during the 2017 bull run, peaking at more than 1,000 ETH per hour.
The sky-high fees are pushing the average user out of the system and hurting the profits of the major exchanges. US crypto exchange Coinbase Pro announced earlier today that it would no longer cover network fees in the face of user frustration.
Coinbase Pro announced:
Historically, Coinbase Pro has absorbed these fees on behalf of our customers. However, as crypto has begun to gain broader adoption in applications like DeFi, payments and other projects, networks have gotten busier.
— Coinbase Pro (@CoinbasePro) September 17, 2020
Other exchanges are reportedly considering following suit.
Three Arrows Capital co-founder Su Zhu said the high fees have made the Ethereum network practically unusable, calling it “absolutely atrocious.”
Many other users have reported transactions that took hours or failed. Miners are financially incentivized to process transactions with the highest fees first, resulting in a backlog of multiple transactions with lower fees.
Adding to the congestion of the network, each block has a limit on the amount of gas that can be included – reducing the number of transactions that can be confirmed in the block as fees increase.
The network congestion is causing users and developers to look for alternative solutions.
— CZ Binance (@cz_binance) September 15, 2020
Binance Smart Chain (BSC) has seen an increase in growth this week, with the Binance founder and CZ CEO boasting that the platform hit 40% of Ethereum’s trading volume this Tuesday.
- The Strength In The Face Of Insane Sell Pressure Seems To Indicate That UNI Price Likely To Rally Towards $5 Next
- Now Signs Appearing That Bitcoin Price Could Suggest The Rally Was Nothing More Than A Bull Trap And Retest Of Resistance Turned Support