Heavy transactions from crypto wallets linked to Binance sent Ethereum fees skyrocketing on Thursday morning. The sudden wage increase stunned observers. According to Etherscan data, hundreds of wallets that have been inactive for a long time started sending altcoins to a single wallet labeled Binance 14.
Binance puts Ethereum gas usage on the rise again
Heavy transaction activity from crypto wallets linked to Binance sent Ethereum fees through the roof on Thursday morning. At 12:30 Turkish time, hundreds of long-inactive wallets began sending ETH to a single wallet labeled Binance 14, according to Etherscan data. This transfer wave lasted approximately 20 minutes. Ethereum gas fees jumped from 15 gwei to 300 gwei during this time. The cost of simple Ether transactions increased from $0.40 to $10.
In his statements to DL News, a Binance official stated that the transactions were a routine merging of Ether to their wallets. “This impact on gas prices was unintentional but was quickly resolved,” the spokesman said.
How do gas fees work in Ethereum? How much did Binance pay?
In Ethereum, “gas” refers to the fee associated with the computational work required to process transactions or perform smart contract operations. The cost of gas is usually stated in gwei. One Ether is divided into one billion gwei. According to Etherscan data, Binance spent over $844,000 for these transactions.
Back in December, we witnessed Binance clogging the Ethereum network with transactions. However, at the time, Binance stated that it was pooling funds from various deposit addresses in preparation for the Proof of Reserve audit.
Why was so much paid?
It’s surprising that Binance is making multiple transactions in a row again. If he spaced out transactions, he could avoid network congestion and pay less fees. Ethereum gas fees rise as activity on the blockchain increases. By spacing out its transactions, Binance could avoid clogging the network and paying extra fees. This movement in the altcoin market is an important warning for investors. cryptokoin.com As we reported, ETH was caught in the middle of massive whale sales today.
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