Ethereum Gas Fees Skyrockets Over 1,900% After Binance Activates Dormant Wallets
Portfolio Pulse from Benzinga Neuro
Cryptocurrency exchange Binance inadvertently caused a 1,900% surge in Ethereum gas fees following a sudden wave of transactions involving dormant wallets. The Binance-affiliated wallet, Binance 14, experienced a sudden surge in transactions, leading to a rise in Ethereum gas fees from 15 to nearly 300 Gwei. Binance explained that these transfers were part of a routine consolidation of ETH to one of its wallets and that the resulting increase in gas fees was an unintentional but quickly resolved consequence.
September 22, 2023 | 8:50 am
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NEUTRAL IMPACT
The sudden surge in Ethereum gas fees caused by Binance's transactions could potentially impact the price of Ethereum in the short term.
The sudden surge in Ethereum gas fees caused by Binance's transactions could potentially lead to a decrease in Ethereum transactions due to the increased cost, which could in turn impact the price of Ethereum. However, Binance has stated that the increase in gas fees was an unintentional but quickly resolved consequence, so the impact may be short-lived.
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