In the world of cryptocurrency, tales of outrageous gas fees and wild memecoin hype are becoming more and more common. Just recently, a single trader spent a whopping 64 Ether – the equivalent of $118,000 – to buy $155,000 worth of a memecoin called Four (FOUR). According to whale alert, the transaction went through, but some are calling this fee unsustainable for mass adoption and a huge waste of money.
The Debate Over Ethereum Gas Fees: Memecoin Frenzy, MEV Trading Bots, and SUI-Farming Sins
Ethereum gas fees have caused a great deal of drama and discussion in the crypto space, with some supporters praising the fees as a source of revenue, while others see it as an unneeded obstacle to mainstream adoption. Arbitrum One, an Ethereum layer 2 network, boasted more daily fee revenue than Bitcoin and Ethereum itself saw 28x the fee revenue of Bitcoin within the same time frame. But the question of whether this kind of activity is actually beneficial to Ethereum in a long-term way remains a subject of debate.
One of the key drivers behind the explosion in Ethereum gas fees is the recent memecoin frenzy, which was caused in part by the craze around Pepe (PEPE). Average Ethereum transaction fees currently sit at around $22.98 per transaction, the highest the network has seen since the peak of $31.11 back in May 2022. This recent surge has been blamed on the Maximal Extractable Value (MEV) trading bot which front-runs memecoins, as well as Justin Sun‘s SUI-farming sins.
Jaredfromsubway.eth: Congesting Network, Pocketing Millions
The MEV bot, which goes by the pseudonym jaredfromsubway.eth, has been quite prolific in its sandwich attacks and has been able to pocket millions of dollars while congesting the network at the same time. Reports say that Jared was responsible for 455 ETH ($950,000) in transaction fees in the last 24 hours and has spent upwards of 3,720 ETH ($7 million) in gas fees over the past two months.
While some proponents of Ethereum argue that the high gas fees prove the network’s growing usability, many believe that these figures are just a few thousand users gambling on memecoins. Others have complained about having to pay an exorbitant fee to purchase a $20 NFT off Ethereum, or having to pay $40 in fees to buy a $20 digital good.
Ethereum Network: Unpredictability, Profits, and Eye-Watering Fees
Finally, it’s worth mentioning that the recent surge in Ethereum’s daily fee revenue has been accompanied by an increase in gas fee for Layer 2 transactions as well. It appears that swapping tokens on ZK-based scaling solutions like Polygon zkEVM and Starknet have seen fees increase to levels as high as $11, while Optimistic rollup solutions like Arbitrum One and Optimism have fees of $0.2 to $0.6.
The Ethereum network continues to be a source of wild unpredictability, lucrative profits, and eye-watering fees. Its success or failure will be determined by how it is able to balance its own needs with those of its users. For now, prepare for more tales of reeking gas fees and wild memecoin hype as the Ethereum network continues to blaze its own path.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
