Gas Fee on Ethereum Chain Soars 30x: Insider Colin Wu provides explanation

Learn about the sudden surge in gas fees on the Ethereum network and the key factors leading to this increase. Stay informed on the latest developments in the cryptocurrency market.

Posted 8 months ago in Blockchain

A chart showing the spike in gas fees on the Ethereum network

The gas fee on the Ethereum chain has experienced a drastic surge of 30x, with Chinese crypto journalist Colin Wu shedding light on the matter. Wu revealed on social media that the gas fee on the ETH mainnet has surged from less than 10 to approximately 300. This sudden increase in gas price is attributed to the high on-chain activity of Binance's 14 hot wallet, led by Changpeng Zhao (CZ), the CEO of the popular crypto exchange.

Wu stated that transactions made via Binance's hot wallet today consumed a significant amount of gas, totaling 362 ETH, with the total transaction count reaching a whopping 94,000. This abnormal surge in gas consumption and transaction volume has resulted in the surge of gas fees on the Ethereum network.

The overall deposit transaction count on Binance's 14 wallet has already reached 145,204, with 144,947 depositing wallets. As a result, 530 ETH has been used in fees. The Ethereum community has also witnessed the withdrawal of a large sum of 5,040 ETH by an anonymous whale investor from Binance, worth around $8.17 million.

In recent days, Ethereum has experienced a decline in price, dropping from $1,657 to $1,592. Additionally, Whale Alert, a popular crypto tracker, reported the awakening of a dormant pre-mine Ethereum whale that transferred a significant amount of 200 ETH, valued at $325,858.

Last updated 9/21/2023, 10:12:54 AM


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