Binance Reports Massive Ethereum Gas Fee Utilization Here’s Why
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While the world’s first cryptocurrency, Bitcoin, has lost its grip over the important price level of $22,000, the lead altcoin, Ethereum, to has suffered a pullback. Recently, Ethereum had made a monthly high of $1655, but with the scheduled FOMC meeting on July 27, Ethereum has plunged by 13%.
At the time of publication, Ethereum is selling at $1,414, with a fall of 8.16% in the last 24hrs.
Alex Svanevik, CEO at Nansen, a blockchain analytics firm, claims that as Ethereum’s gas fee has dropped, Binance has popped in to take advantage of this as the exchange is moving its funds on Ethereum. As a result, the gas fee utilization has spiked by 3000% in just one hour on Binance.
Looks like @binance is making good use of low gas fees to move funds on Ethereum – smart @cz_binance pic.twitter.com/Rzo5cEQljm— Alex Svanevik (@ASvanevik) July 26, 2022
There was a confirmation from Changpang Zhao, Binance’s CEO, regarding the high utilization of the Ethereum network by users of the exchange due to the drop in gas fees.
This scenario suggests that there are high chances that the conversion from PoW to PoS will be successful.
Binance Users Spend 28ETH In Gas Fee In An Hour
The minimum gas fee was 4 Gwei, and at present, it is 3 Gwei. The transfer cost on ETH is $0.34, while on ERC20, it is $0.67%.
According to Alex Svanevik, today, Binance has recorded a huge Ethereum gas fee utilization where 28ETH was spent as a gas fee in just an hour on the platform. This accounts for an increase of 3048% in one hour and 437% in the last 24hrs.
Alex also says Coinbase is the next as the platform has seen a 5.35% and 135% jump in 1 hour and 24hrs, respectively.
The Nansen CEO report even showed that 90% of Ethereum transactions make use of EIP-1559 and as EIP-1559 plays an important role in burning Ethereum tokens and the merge, the price is expected to fall after the Merge. This is because there will be a decline in the circulating supply.