{"id":552377,"date":"2023-09-22T00:00:49","date_gmt":"2023-09-22T00:00:49","guid":{"rendered":"https:\/\/wncen.com\/?p=552377"},"modified":"2024-06-11T14:29:30","modified_gmt":"2024-06-11T14:29:30","slug":"this-binance-wallet-triggered-a-temporary-30x-surge-in-ethereum-gas-fees","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/binance-coin\/this-binance-wallet-triggered-a-temporary-30x-surge-in-ethereum-gas-fees\/","title":{"rendered":"This Binance Wallet Triggered A Temporary 30X Surge In Ethereum Gas Fees"},"content":{"rendered":"

A cryptocurrency wallet associated with the prominent trading platform, Binance, has seen massive activity in the last 24 hours, leading to abnormally high transaction fees on the Ethereum network.<\/span><\/p>\n

Binance Wallet Incurs Nearly $850,000 Gas Fees In One Day<\/span><\/h2>\n

A crypto wallet labeled \u201cBinance 14\u201d witnessed a significant transaction surge on September 21, rising above 140,000. <\/span>As a result of this activity surge, transactions of the Binance-owned wallet consistently incurred gas fees of over 300 gwei, even though the network\u2019s average fee was around 10 gwei.<\/span><\/p>\n

This gas fee jump and significant wallet activity <\/span>have resulted in around 530 ETH<\/span><\/a> (equivalent to nearly $850,000) in gas used on the Binance 14 address today.\u00a0<\/span><\/p>\n

Related Reading: Binance & Deribit Traders Aggressively Short Bitcoin, Squeeze Incoming?<\/a><\/div>\n

The increase in transactions on the Binance wallet had a broader, albeit temporary, impact on the Ethereum network. Gas fees on the blockchain momentarily jumped from less than 10 gwei to above 330 gwei per transaction, according to blockchain data tracker Etherscan<\/a>.<\/span><\/p>\n

Gas fees refer to the cost blockchain users incur or pay validators to conduct transactions or execute contracts on the Ethereum network. Fees depend on the blockchain’s demand and supply of processing power. This means when a network has many transactions, there is often a high demand for processing power, which increases gas fees.<\/span><\/p>\n

Possible Reasons For The Gas Fee Spike<\/span><\/h2>\n

In the wake of this incident, Wu Blockchain reported that Binance said it was carrying out its wallet aggregation process when the gas fees were low to facilitate withdrawals and ensure the safety of user funds. Nonetheless, some prominent crypto community members have weighed in on the situation, offering possible explanations for the gas fee spike.\u00a0<\/span><\/p>\n

Martin Koppelmann, cofounder of the Gnosis chain, <\/span>said on the X<\/span><\/a> (formerly Twitter) platform that Binance might be using a \u201creally inefficient script\u201d to consolidate, leading to high transaction costs.<\/span><\/p>\n

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Gas prizes spiking because of a ton of regular ETH transfers related to Binance.
a) they are using a really inefficient script to consolidate funds and are massively overpaying transaction costs
b) something fishy is going on<\/p>\n

— Martin K\u00f6ppelmann \ud83e\udd89\ud83d\udcb3 (@koeppelmann) September 21, 2023<\/a><\/p><\/blockquote>\n