Binance Paid About $ 10 Million In Ethereum Transaction Fees | Crypto Investment

Binance Paid About $ 10 Million In Ethereum Transaction Fees

Over the past seven days, the Binance exchange had to spend about 5,000 ETH to pay for gas on the Ethereum network.

The ETH rate, following bitcoin, continues to move historical highs, confidently heading for the psychological barrier of $ 2,000. Against this background, a record increase in the cost of transactions is noted in the Ethereum network.
The gas attack continues
The current situation in the Ethereum ecosystem is primarily related to the ongoing boom in the decentralized finance (DeFi) industry, which is home to this particular blockchain. Users' interest in various types of financial activities without the participation of banks or any other intermediaries is growing. Following it, the price of gas also grows.
The average commission for ETH transactions has reached $ 20. As a result, the Binance crypto exchange had to pay almost $ 10 million for gas in the last week alone. As the number of users increases, blocks of transactions requiring verification create long queues, wait times increase, and fees grow.
Binance has become the main victim
According to a selection of statistics provided by the analytical company Nansen, over the past seven days, the Binance exchange had to spend about 5,000 ETH to pay for gas on the Ethereum network.

These results reflect the popularity of this platform, which accounted for 4.24% of all gas fees paid by exchanges during the period. Huobi came in second on this list. Her commission expenses were 1,066 ETH.
In general, the problem of exorbitant ETH fees is growing, adversely affecting platforms that work with smart contracts. Meanwhile, the full deployment of the ETH 2.0 blockchain, designed to solve the existing problems of scaling and transaction speed / cost, will have to wait another year or two.
Immediate decisions
In the meantime, users can only pin their hopes on the EIP 1559 update, which should fundamentally change the existing model of ETH transaction fees.
Those who do not want to wait are already starting to flee the Ethereum network in search of more cost-effective blockchains.
One of these popular solutions at the moment is the Binance Smart Chain (BSC) platform developed by the Binance exchange. Strictly speaking, BSC is a kind of centralized-decentralized hybrid, which the head of the exchange Changpeng Zhao himself calls "CeDeFi". This third-party presence scares off the platform of the more visionary cryptocurrency purists.
However, it has recently seen a significant increase in trading volume, confirming that such a decision has now become increasingly relevant amid growing fees on the Ethereum network.