The traders have been recently racing to leave the leveraged positions in on-chain after appearing to move towards a record surge in the gas process of Ethereum on 29th May, Wednesday. On the other hand, the users have reported that the transaction fees of over $1,000 have been stuck.
The fees of Ethereum have increased exponentially to a record high during this time of the latest cryptocurrency downturn. In addition, the users have been paying over 2,000 gwei in order to execute their transactions at the peak.
Record High Fees Of Ethereum
Delphi Digital is a research company dealing with digital assets. They have recently observed that the gas prices of Ethereum have been ranging from 1,500 to 1,700 gwei. This took place for almost 1 hour while the DeFi liquidations motivated gas wars between arbitrageurs and liquidators.
On 19th May, the newsletter of Daily Gwei reported that Anthony Sassano, the Etehreum developer, had speculated that fee frenzy will probably accelerate through on-chain traders on margin. These traders will be racing to leave leveraged positions.
Chris Weston is a broker of Pepperstone based in Melbourne, who informed that the role of the crash leverage is to estimate the cascading calls of margin. He said that this encouraged liquidations worth $9.13 billion all over the cryptocurrency exchanges in the last 24 hours.
Sam Trabucco of Alameda Research, explained the high leverage in the ETH markets. He also criticized the journey of the ETH rally that was mainly owing to the reason that there was spot buying from institutional investors.
However, analytics have been able to find a positive point in the fee surge. The estimation by Paradigm’s Hasu emphasized that ETH stakes might capture 10 to 100s of million dollars through fee revenue. This will happen after EIP-1559 along with ‘proof of stake’ survives the crash.
