Coinbase Pro has announced that it will no longer absorb ETH network fees. The decision to discontinue this came as ETH miners’ hourly revenue hit a five-year record high.
Currently, miners’ hourly gas fees hit 2,275 ETH, which equals about $880,000. As reported by Cointelegraph, the huge increase is tied to Uniswap’s announcement to airdrop the UNI governance token to past users of the decentralized exchange. Following the announcement, more than 70,000 users rushed to claim the free tokens, pushing the gas price to 700 Gwei.
The surge in gas fees has pushed Coinbase Pro to announce that it will stop covering network fees. Before now, the crypto exchange absorbed the fee on behalf of customers. However, in a recent tweet, Coinbase Pro said it will now pass network fees directly to customers. The exchange added that it does not charge network fees for crypto transfers between two Coinbase wallets.
Blockchain analytics firm, Glassnode, commented on the recent surge in a tweet:
“Following [Uniswap’s] announcement of the UNI token today, Ethereum saw a massive surge in miners fees. Almost $1M USD in fees were spent in a single hour! This is a new record high (anomalous tx fees earlier this year excluded).”
Also, the co-founder of Three Arrows Capital Su Zhu, commented on the surge. He expressed his displeasure about the incident and described the event as “absolutely atrocious.”
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