Following Uniswap’s UNI token launch, Ethereum transaction fees spiked to almost $1 million an hour. Ethereum miners’ hourly revenue has hit a five-year record, with fees currently bringing in 2,275 ETH ($880K) per hour.
The spike was triggered by yesterday’s announcement that Uniswap would airdrop it’s governance token UNI to past users of the decentralized exchange. Following the UNI announcement, more than 70,000 users rushed to claim free tokens and the gas price surged past 700 Gwei.
Crypto analytics firm Glassnode tweeted that fees had topped $1 million in an hour: Following UniswapProtocol's announcement of the $UNI token today, #Ethereum saw a massive surge in miner fees. Almost $1M USD in fees were spent in a single hour!
These figures dwarf the daily revenue earned by miners during the late 2017 bull run, which peaked at a little over 1,000 ETH per hour.
The sky high fees are pushing ordinary users out of the system, and hurting the bottom line of major exchanges. U.S. crypto exchange Coinbase Pro announced earlier today that it will no longer cover network fees much to the disappointment of users.
"Historically, Coinbase Pro has absorbed these fees on behalf of our customers," it said. "However, as crypto has begun to gain broader adoption in applications like DeFi, payments and other projects, networks have gotten busier." Other exchanges are reportedly considering following suit.
Three Arrows Capital co-founder Su Zhu said the high fees have made the Ethereum network basically unusable, calling it “absolutely atrocious”.
Numerous other users reported transactions taking hours or failing. Miners are financially incentivized to process transactions with the highest fees first, resulting in a massive backlog of the transactions with lower fees.
Further adding to the network bottleneck, each block has a limit on the amount of gas that can be included in it — reducing the number of transactions that can be confirmed in the block as fees increase.
The network congestion is driving users and developers to seek alternative solutions. Binance Smart Chain (BSC) has seen increased growth this week with Binance founder and CEO CZ boasting the platform hit 40% of Ethereum’s transaction volume on Tuesday this week.
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | BTC | Bitcoin predictions | 78.8% | 43 | $70 549.88 | 3.00% | 8.27% | $1 387 494 788 714 | ||
---|---|---|---|---|---|---|---|---|---|---|
2 | ETH | Ethereum predictions | 76.8% | 48 | $3 558.87 | 2.67% | 3.84% | $427 320 303 389 | ||
3 | USDT | Tether predictions | 95.2% | 1 | $0.999961 | 0.05% | 0.02% | $104 450 060 275 | ||
4 | BNB | Binance Coin predictions | 60% | 80 | $581.56 | 2.48% | 6.11% | $86 964 779 028 | ||
5 | SOL | Solana predictions | 56.8% | 89 | $185.81 | 2.06% | 3.93% | $82 554 709 619 | ||
6 | XRP | XRP predictions | 79.6% | 30 | $0.629771 | 3.31% | -0.48% | $34 564 529 747 | ||
7 | USDC | USD Coin predictions | 92.4% | 2 | $1.000062 | 0% | 0% | $32 292 135 993 | ||
8 | DOGE | Dogecoin predictions | 64% | 68 | $0.219561 | 20.82% | 46.58% | $31 541 252 554 | ||
9 | ADA | Cardano predictions | 66% | 67 | $0.649764 | 1.83% | 3.99% | $23 119 704 162 | ||
10 | AVAX | Avalanche predictions | 59.6% | 88 | $54.41 | 1.81% | 1.88% | $20 533 847 583 | ||
11 | SHIB | SHIBA INU predictions | 56.8% | 94 | $0.000032 | 5.79% | 17.12% | $18 596 655 821 | ||
12 | TON | Toncoin predictions | 58.8% | 88 | $4.90 | -1.11% | 20.64% | $17 014 430 701 | ||
13 | DOT | Polkadot predictions | 71.6% | 52 | $9.46 | 1.54% | 3.44% | $13 498 790 542 | ||
14 | LINK | Chainlink predictions | 77.2% | 42 | $19.16 | 0.31% | 5.06% | $11 246 466 874 | ||
15 | BCH | Bitcoin Cash predictions | 69.2% | 60 | $569.65 | 6.10% | 38.03% | $11 211 669 006 |
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2024 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.