The Binance-linked wallet has completed more than 140,000 transactions on the Ethereum network, according to the platform Dune. The fees for these transactions amounted to approximately 530 ETH (approximately $840,000 at the time of writing).
Analytical service Etherscan also confirmed information about numerous transactions. The commission for some transfers exceeded 300 gwei, with an average value of 13 gwei.
Thus, Binance’s gas costs were tens of times higher than the average for the day.
Representatives of the crypto exchange did not provide any explanation of the reason for such a high commission. However, some experts expressed their opinions regarding this situation.
According to on-chain analysts Scopescan, the sudden increase in fees is due to activity to consolidate inactive deposit addresses on Binance.
Due to #Binance consolidating funds from long-inactive deposit addresses, the #Ethereum network is experiencing congestion, causing Gas fees to surge to 300 gwei.
Address:https://t.co/sdDEs8Okxb pic.twitter.com/9rq9SVww07
— Scopescan (🪬 . 🪬) (@0xScopescan) September 21, 2023
Gnosis co-founder Martin Köppelmann suggestedthat Binance used a highly inefficient script to consolidate funds, which resulted in significant overpayment of transaction costs.
In September, a Paxos employee paid more than $510,000 in fees for a single transaction on the Bitcoin network. Later, its representatives contacted the mining pool F2Pool for a refund.
Source: Cryptocurrency
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