Transaction fees on the Ethereum blockchain were multiplied by ten to reach 318 Gwei during the day of November 8. The fee for executing a single trade approached the $10 mark at one point. This situation, together with the current market crash, has caused the price of the cryptocurrency to drop, which is currently testing the $1,200 threshold. The prices of other crypto-assets have also fallen sharply over the past 24 hours.
Following the latest spike, transactions made through the decentralized exchange Uniswap reached the cost of $60, according to data collected by the Trustnodes.com site.
Observers noted that the latest spike was fueled by a wave of selling following the panic following the announcement of the takeover of FTX by the first market exchange, Binance. Binance CEO, Changpeng ‘CZ’ Zhaosaid the move would relieve pressure on FTX’s liquidity.
“This afternoon, FTX requested our assistance, following a significant liquidity shortage. To protect users, we have signed a non-binding letter of intent, with the objective of fully acquiring FTX.com and to help deal with this liquidity crisis,” said tweeted Zhao.
Ethereum’s price is currently at $1,208, an 18% drop over the past 24 hours, as the crypto-asset hit $1,565 yesterday, according to data published by CoinMarketCap.com .
In the crypto industry, gas fees represent compensation used to cover the calculations needed to complete transactions. The gwei is the smallest unit of Ethereum, and it is used to pay gas fees. Gwei is short for Gigawei, and 1 ETH is equivalent to 1 billion Gwei.
The average price of a transaction made through the Ethereum blockchain is, at the time of writing, 31 Gwei, according to data from Etherscan.io.
Prior to the blockchain upgrade dubbed London in 2021, which included Ethereum Improvement Proposal (EIP)-1559, Ethereum included fixed-size blocks.
“During times of high network demand, these blocks operated at capacity. As a result, users often had to wait for demand to subside for their transactions to be included in a block, resulting in a poor user experience,” according to the community website.
The update introduced variable-size blocks to the blockchain, with each block assigning a target size of 15 million gas, but also allowing the block size to expand or shrink based on network demand until ‘on the edge of the 30 million gas block.
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