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A solitary trader recently expended an impressive 64 Ether — valued at $118,000 — in gas fees while acquiring $155,000 worth of a memecoin named Four (FOUR).
As per a report from the well-known blockchain monitoring service Whale Alert, the individual trader disbursed an extraordinary $119,157 in Ether (ETH) to finalize a Uniswap transaction that exchanged 84 Wrapped Ether (WETH) for 13.8 billion FOUR tokens.
A fee of 64 #ETH (119,121 USD) has just been paid for a single transaction! https://t.co/3w4UD0AZbw
— Whale Alert (@whale_alert) May 8, 2023
It seems that the trader intentionally raised their gas fee to expedite the transaction time for acquiring the memecoin. According to the pseudonymous Twitter user FlurETH, the trader currently holds 133 ETH ($245,667) in unrealized gains from their investment in the memecoin.
High gas fee transaction details. Source: Etherscan.
Gas fees on the Ethereum network have sparked discussions within the crypto community, with several prominent Ethereum supporters commending the increased activity for its revenue-generating benefits and potential long-term deflationary impact on the Ether supply.
Arbitrum One, an Ethereum layer 2 network, just did more daily fee revenue than Bitcoin.
Not to mention that Ethereum itself did more than 28x the fee revenue of Bitcoin in the same time period. pic.twitter.com/plLEzdynNB— sassal.eth (@sassal0x) April 20, 2023
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Conversely, some have criticized the fees, arguing that unless the network becomes more “affordable,” widespread adoption will remain unattainable.
As reported by Cointelegraph, one of the primary factors contributing to the rise in Ethereum gas fees is the recent memecoin frenzy, largely fueled by the intense purchasing of a new memecoin called Pepe (PEPE). At the time of this report, the average Ethereum transaction fee stands at $22.98, the highest level observed since May 12, 2022, when the average fee peaked at $31.11.
Average Ethereum transaction fees in the past year. Source: Etherscan
Another significant factor behind the sharp increase in gas fees is the maximal extractable value trading bot that is front-running memecoin transactions on a large scale. The infamous MEV bot and “sandwich” attacker, known only by the pseudonym jaredfromsubway.eth, has been reaping substantial profits from the increased network activity.
A sandwich attack occurs when an attacker “sandwiches” a victim’s transaction between their own two transactions to manipulate the price and gain profit from the user.
On April 18, Jared amassed an impressive $950,000 in profits from the sandwich attacks. Jared has also emerged as one of the largest gas consumers on the Ethereum network. On April 20, Jared accounted for 7% of the total gas used on the network and expended 455 ETH in transaction fees.
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