With the collapse of the crypto market, Ethereum transaction fees have reached record levels. Users paid more than 2,000 gwei fees for a single transaction at the time transaction fees peaked.
Digital asset research firm Delphi Digital said that as DeFi liquidations led to gas wars, gas fees were Circulated between 1,500 and 1,700 gwei transferred.
Ethereum developer Anthony Sassano suggested in the Daily Gwei newsletter on May 19 that the jump in gas fees was caused by on-chain margin investors trying to close their leveraged positions on the chain:
“The price was falling so fast that people started worrying about their leveraged positions on the chain and were willing to pay every fee for their transactions to be included in the next Ethereum block.”
Chris Weston of Melbourne-based brokerage firm Pepperstone also mentioned that the crypto exchanges have liquidated $ 9.13 billion in the last 24 hours.
CoinShares CSO Meltem Demirors, Over a thousand dollars in gas fees although transactions were complaining that they were queuing.
the market punching me in the face, and reminding me, once again, that blockchain compute is a finite resource
– Meltem Demir ◎ rs (@Melt_Dem) May 19, 2021