Main navigation

Did Someone Just Pay Over $39,000 in Gas Fees for Ethereum Transaction?

Mon, 01/23/2023 - 08:12
article image
Godfrey Benjamin
Single Ethereum transaction might have cost more than $39,000
Did Someone Just Pay Over $39,000 in Gas Fees for Ethereum Transaction?
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

Ethereum's (ETH) gas wars may be going parabolic as a transaction allegedly costs more than $39,000, or 24.225 ETH. The snapshot of the transaction cost was shared on Twitter by crypto investor and analyst Jason Williams, who sarcastically teased that Ethereum is "working great" despite the bogus amount being paid as gas fees.

While it remains unclear what the transaction was that Williams referred to, the tweet lends reality to how far the Ethereum network still has to go with respect to combating gas wars and the likelihood of users paying a very high amount for transaction fees.

One of the major concerns of Ethereum users prior to The Merge was that transaction costs were going through the roof. At the time, it was not uncommon for users to pay a relatively larger amount than the real value of their transaction. While the transition to proof of stake (PoS) helped expand the bandwidth of the network, a significant plunge in gas may not be experienced until other upgrades of the new PoS network are activated.

As part of the efforts to make the Ethereum protocol more usable, Vitalik Buterin has reiterated his commitment to helping develop rollup technologies for Layer 2 networks.

Ethereum "Killers" Actually Benefit ETH in the Long-Term, Says Strategist

Ethereum killers to take advantage

The high gas requirement of Ethereum has caused the protocol a lot of reputation damage in the past, and if this high transaction fee is returning, it may help boost the acceptance of the so-called Ethereum killers.

The majority of new-generation blockchain protocols, including Cardano, Avalanche, Solana and BNB Chain, offer users cheaper transaction costs that have made many protocols rethink choosing Ethereum. In fact, the Yuga Labs team had to move its native token, ApeCoin (APE), from Ethereum to Polygon because of skyrocketing gas fees that were tearing up the community at the time.

Should the gas wars be returning, the so-called Ethereum killers may be benefitting more in the near term.

article image
About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.