Editor's Picks Ethereum News Market News

Trader Spends $120,000 in Gas Fees to Purchase a Memecoin worth of $155,000

Trader Pays $120K Gas Fee

A trader reportedly spent a whooping 64 Ethereum (ETH) on gas fees while purchasing a memecoin called Four ($FOUR), raising concerns about the high costs of transactions on the Ethereum network as per Whale Alert update.

The trader, who remains unidentified, spent 64 Ether, equivalent to $118,000, on gas fees for a single trade, which acquired $155,000 worth of FOUR tokens. This means the gas fees accounted for 76% of the total purchase price.

Whale Alert, a well-known blockchain tracking service, reported the trader’s transaction, which involved swapping 84 Wrapped Ether (WETH) for 13.8 billion FOUR tokens on Uniswap. 

It was gathered that the trader decided to increase their gas fee voluntarily to expedite the transaction process. 

According to Twitter user FlurETH, the trader has since accumulated 133 ETH ($245,667) in unrealized profit on their memecoin investment.

Mixed Reactions Over Ethereum Gas Fees

The topic of gas fees on the Ethereum network has sparked debate among the cryptocurrency community in recent times.

Some Ethereum advocates view high gas fees positively, as they generate revenue and apply long-term deflationary pressure on Ether supply. However, critics argue that mass adoption is unlikely unless the network becomes more affordable.

One of the main factors contributing to the increase in Ethereum gas fees is the recent surge in memecoin trading, particularly the buying frenzy around a new memecoin called Pepe (PEPE). 

As of now, the average Ethereum transaction fee stands at $22.98, the highest since May 12, 2022, when it peaked at $31.11.

Mixed Reactions Over Ethereum Gas Fees

Another reason for the spike in gas fees is the activity of a maximal extractable value (MEV) trading bot that has been front-running memecoin trades. 

The notorious bot, operated by the pseudonymous jaredfromsubway.eth, profits from “sandwich attacks.” In these attacks, the bot manipulates prices by sandwiching a victim’s transaction between its own two transactions.

On April 18, Jared earned a staggering $950,000 from sandwich attacks.

In the same vein, Jared has been one of the largest gas spenders on the Ethereum network

Related posts

Bitcoin (BTC) Volatility Decreases Amidst Liquidity Crunch

salaam

Chrome's malicious browser extension stole users' private keys

alfonso

$15M in Crypto And Exotic Cars Seized as Chinese Police Bust Arbitrage Scam

ibrahim