On September 27, cryptocurrency exchange Bitfinex transferred $ 100,000 USDT stablecoins to the decentralized trading platform Deversifi, paying a transaction fee of $ 23.6 million. Fees of 236 exceeded the transfer amount. According to The Block, this commission may become the largest in the Ethereum blockchain, writes RBC Crypto.
A similar situation occurred last week. The buyer of 10 non-fungible tokens (NFT) from TIME magazine, the cost of which was 1 ETH ($ 3.1 thousand at the time of purchase), paid a transaction fee of more than $ 70 thousand. According to the Dune Analytics service, users spent almost four times more than buying TIME NFT tokens.
The experts explained why there are surges in commission fees on the Ethereum network and how to protect against them.
In general, commissions in the Ethereum network have grown significantly against the background of the rise in price of the altcoin itself and the influx of new users, explained Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. According to him, it is also worth considering the recent London update, which deprived the miners of some of their income and now they are trying to compensate for the lost profit with the help of a surcharge received for fast transactions. Despite this, millions of commissions are an obvious failure or mistake, the expert says.
“This is an obvious failure or a mistake by the sender, who set the wrong conditions for accelerated processing of the transaction,” Soshnikov explained.
Commissions for speeding up transaction processing, of course, fluctuate and can vary several times, but not millions of dollars for $ 100,000, the expert added.
The $ 23 million commission is definitely a technical failure of one of the algorithms, says Nikita Zuborev, senior analyst at Bestchange.ru. According to him, similar incidents have happened before in other blockchains.
“Vulnerability in the code of the translation system or even sabotage. But this is an out of the ordinary situation, ”the analyst said.
A commission of $ 23 million is a common mistake made by the sender when forming a transaction, says Anton Bukov, co-founder of 1inch Network. In his opinion, Bitfinex has the opportunity to negotiate with the mining pool that processed the transaction in order to return these funds.
How not to overpay for a transaction
In order not to become a victim of such incidents and not to pay a commission that significantly exceeds the size of the transfer, the sender must carefully set the conditions for the transaction, Soshnikov explained. He also recommended making transactions during periods of low load on the blockchain, since this indicator directly affects the size of commissions on the network.
A senior analyst at Bestchange.ru joined the recommendations. He advised to postpone non-urgent transactions and, when transferring Ethereum, focus on various services that track the dynamics of commissions on the network. For example, this data can be obtained using the Etherscan service.
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