The average transaction fee on Ethereum has been hovering around its yearly lows, but a particular user ended up shelling out close to $90k to process a transaction worth $2.2k.
Around six hours back, the user initiated a transfer between two addresses. The transaction was identified and included in block number 20508049 within five seconds.
Specifically, the user paid 34.6 ETH worth $87.9k to process the transfer. At this stage, it is worth noting that the average gas fee is hovering in 1-2 gwei bracket.
In fact, the 7-day average transaction fee on Ethereum stood at $3.7 at press time. As depicted in the chart below, $4.48 is the highest reading this metric has flashed in over a month.
When calculated using the lower end, the user forked out 2,432,330% in excess on this particular transaction. Likewise, if the higher-end is considered, the user paid over 2,008,830% extra.
The fee lows have impacted the issuance of Ether, and in retrospect, the amount of ETH burned on the network has dropped to its YTD lows. Over the last two days, only 121 and 149 tokens have been burned respectively.
The emission is hovering around the 2000 ETH mark at the moment. This, in turn, is synonymous with inflation.
Chalking out what could be done in such a situation, Gnosis founder Martin Köppelmann said,
“Basefee right now at a multi year low of ~0.8 GWEI. 23.9 would be required to offset staking rewards. IMO Ethereum needs to get more L1 activity again and even if it sounds counterintuitive at such low rates, raising the gas limit can be part of a strategy.”
