Ethereum fees hit new peak levels recently and according to analysts, Tether is to blame. In our latest tether news today we read more about the Glassnode analysis.
Some analysts from Glassnode created a chart showing how the Ethereum fees have hit a new all-time high with major names such as Tether and Uniswap leading the spending. The analysis shows that the ETH gas spending reached a new all-time high and USDT transfers make up to 14% of all gas spending.
According to the new analysis from the blockchain intelligence company Glassnode, the source of the skyrocketing fees resulting in more than $7 million being paid in gas each day is Tether. The examination identified that Tether is to blame as the single largest source of ETH gas spending along with the huge spending increases in the DeFi applications such as Uniswap and the arbitrage bots are trying to keep the market at an equilibrium level. it’s all a part of the growing pains for ETH as the users are looking for returns as a pain relief promised with the ETH 2.0 upgrade.
As users compete for limited space in the #DeFi ecosystem, arbitrage bots have become unwelcome gas guzzlers, pushing gas prices to all time highs.
— glassnode (@glassnode) August 13, 2020
Out of all of the fees paid on the Ethereum network, Glassnode found that 14% came as a result of the Tether’s USDT stablecoin. All of the stablecoins transfers accounted for about 1% of all of the fees in August indicating how popular the controversial stablecoin became. Some of the transfers of Ethereum and ERC20 tokens made up about 20% of the gas spending so far. Glassnode found that about 65% spent so far went to operations of smart contracts beyond the transfer of stablecoins. By far, the largest gas consumer was Uniswap which saw trading volumes of more than $1.7 billion.
Reminder: you do NOT have to participate in "the latest hot defi thing" to be in ethereum. In fact, unless you *really* understand what's going on, it's likely best to sit out or participate only with very small amounts.
There are many other kinds of ETH dapps, explore them!
— vitalik.eth (@VitalikButerin) August 14, 2020
Uniswap made up about 40% of all gas spending among the top 20 most active smart contracts and all decentralized exchanges accounted for more than 50%of all gas spending from the top 20 active smart contract designs. The arbitrage bots that buy assets from one source and sell them for profit, were among the biggest gas consumers among the top spending smart contracts with more than 20% of all gas spent. The bots collectively spent more than $2.5 million in fees.
Ethereum 2.0 is in the final stage of the testing and expects to lower the costs by increasing transaction processing from about 15 per second to more than 1000 before the release. The bots could be able to continue the uncovering value until the new upgrade arrives.
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