- Coinbase Pro passes gas fees to users
- ETH miner revenue reaches 5 year high
- Ethereum transaction fees rose to nearly $1 million in one hour
Ethereum News Today – Coinbase Pro has passed gas fees to users after ETH miner revenue reached a 5-year high. Ether miner hourly revenue has managed to hit a five-year high. The fees are currently 2,275 ETH (which is equivalent to $880,000) per hour. This spike in gas fees was reportedly triggered by the announcement relating to Uniswap yesterday. Uniswap said it would airdrop its UNI governance token to users of the exchange. After the announcement, over 70,000 users quickly moved to claim free tokens. Hence, the rise in gas prices has now surged above 700 Gwei.
Transaction Fees Have Topped A Million in One Hour
Glassnode, a crypto analytics firm, posted a tweet relating to transaction fees on Ethereum stating that it has topped about $1 million in one hour. According to the post:
“After Unisawp’s protocol announcement of its UNI token, Ethereum posted a massive rise in miner fees. Almost $1 million in fees have been spent in an hour. The figures hide the daily revenue that miners earned during the 2017 bull run.”
The high miner fees have pushed users out of the network. This has also hurt the bottom line of top exchanges. The U.S-based exchange Coinbase Pro revealed earlier today that it won’t cover network fees very much which has disappointed users.
“Historically speaking, Coinbase Pro has absorbed the fees on behalf of its consumers. However, as digital assets have started gaining broader adoption and applications in DeFi, payments, and other protocols, networks have become more occupied.”
Other Exchanges Could Follow
According to Su Zhu the co-founder of Three Arrows Capital, the high transaction fees have made Ethereum’s network unusable. He called it atrocious. Many other users also reported slow transactions as they were taking hours to get completed or failing altogether. Miners are incentivized financially to process transactions with the highest fees. This has resulted in a huge backlog of transactions that require lower rates.
To add to the network’s bottleneck, each block now has a limit on the sum of gas that can be included in it (hence reducing the total number of transactions that can be confirmed per block) as fees increase. The ongoing network congestion on Ethereum is forcing users and developers to look for alternatives. BSC (Binance Smart Chain) has also posted massive growth in the last few days with Binance CEO and founder bragging that the platform hit a 40% high in Ethereum transaction volume this past Tuesday, September 14.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.
