The transaction fee of Ethereum has now increased to around $1 million an hour. It has been observed that the hourly revenue of Ethereum miners has hit a 5 year high as the fees is currently at $880k per hour. It is believed that such an increase in price might be due to the recent announcement of Uniswap for launching its governance token, UNI. This is because as soon as the announcement for the UNI token came, around 70,000 users rushed to claim the free tokens. Due to this, the gas price has surged to another level.
Almost $1M USD in fees were spent in a single hour!
This is a new record high (anomalous tx fees earlier this year excluded).
— glassnode (@glassnode) September 17, 2020
Ethereum Miner Fees Increased Massively
Glassnodes, a crypto analytics firm, has released data regarding this recent increase in fees. According to the firm, the Ethereum miner fees has surged to around $1 million in an hour. The firm has also mentioned that this increase might be due to the announcement of UNI token launch.
It has been noticed that due to such huge increases in fees, ordinary users are moving out of the system. Coinbase Pro, a leading US crypto exchange, has also said that now it will not cover the network fees. Su Zhu, co-founder of Three Arrows Capital has said that due to such high fees, the Ethereum network is basically becoming an unusable one.
Network Congestion Making Users to Seek Alternatives
Even though the fee has increased to a very high level, users are complaining that the transactions are either failing or taking a lot of time. It is revealed that the Ethereum miners are receiving incentives to process the transactions at higher fees. Due to this, there is a huge backlog in the transactions with lower fees. This network congestion is making the users and the developers seek other alternative solutions. Recently, in this week only, Binance Smart Chain has seen some impressive increase in the transaction volume.