Ethereum (ETH) Fees Spike 50% for Unexpected Reason: Report

IntoTheBlock on-chain data vendor has registered a 50% spike in Ethereum fees this week. The tweet stresses that 18% of gas consumption comes from users of the recently launched VMPX token.

"Suspicious VMPX token" raises Ethereum fees

IntoTheBlock has referred to this new token as "suspicious." This amount of Ethereum fees has been spent on minting the new token – its mechanism allows users to do that themselves. The data company does not provide any further reasons why it believes VMPX to be "suspicious" aside, perhaps, from the great attention is has been getting after its recent launch.

Ethereum fees spiked by over 50% this week, with a new, suspicious token $VMPX making up 18% of the gas consumption per @ultrasoundmoney pic.twitter.com/Tdt86oyW2U

— IntoTheBlock (@intotheblock) July 7, 2023

The coin was launched by Jack Levin, a former Google backend developer, who also founded XEN cryptocurrency. VMPX is ranked 2,680th on CoinMarketCap, currently trading at $0.07284 after a 9% fall over the past 24 hours. Within the same period of time, its trading volume has fallen by 42% and currently stands at $2.94 million.

Besides, according to Ultrasound.Money, this token has contributed to 30% of all Ethereum burns within 24 hours on Thursday.

On July 4, Levin tweeted that VMPX was "number one in activity and gas usage on ethereum."

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Ethereum network keeps growing fast

According to a report published by Santiment, the Ethereum network has been "quietly on the rise." A number of new wallets has been increasing at a large pace. This activity will eventually lead to a market capitalization increase, the tweet emphasizes.

📈 #Ethereum's network growth has somewhat quietly been on the rise. New addresses are being created at an increased pace, which is a signal for eventual market cap growth. We'll monitor this #bullish divergence as $ETH ranges just below $1,900. https://t.co/TpiOUGgYGl pic.twitter.com/B0SrlrsrmB

— Santiment (@santimentfeed) July 6, 2023

Earlier today, popular crypto tracker Whale Alert noticed massive transactions of the second largest digital currency, ETH, between anonymous wallets. A large amount was also withdrawn from the OKX exchange.

Two transfers, carrying 91,588 ETH and 60,295 ETH, were made between unknown wallet addresses – these are worth $174,311,076 and $116,067,007. A total of 34,500 ETH was moved from OKX to an anonymous address.

At the time of this writing, Ethereum is changing hands at $1,861, having dropped by 4.12%, per CoinMarketCap.