Quick take:
- Effective today, Coinbase Pro will start to pass network fees directly to their customers
- Of particular interest, is the Ethereum network that has seen an upsurge in ETH gas fees due to DeFi
- The latest gas fee hike on the Ethereum network was due to users claiming the UniSwap (UNI) token
In a blanket announcement, the crypto exchange of Coinbase Pro has stated that it will immediately begin passing network fees directly to its users. This sudden change in policy is a result of the Ethereum network continually getting congested due to DeFi with the most recent congestion caused by users claiming UniSwap (UNI) tokens.
Below is the full announcement by the team at Coinbase Pro via their Twitter page.
Starting today, Coinbase Pro will pass along network fees directly to our customers. These fees (sometimes referred to as “gas fees” on the Eth blockchain) are paid directly to crypto miners that process transactions and secure the respective network.
Historically, Coinbase Pro has absorbed these fees on behalf of our customers. However, as crypto has begun to gain broader adoption in applications like DeFi, payments and other projects, networks have gotten busier.
$1 Million in ETH Miner Fees Paid Per Hour Due to the UNI Airdrop
According to the team at Glassnode, the aforementioned distribution of the UniSwap (UNI) token to all addresses that have used the platform before September 1st, caused major congestion on the Ethereum network. The rise in activity to claim UNI tokens caused a surge in ETH fees to the point of miners pocketing $1 Million in a single hour.
Additionally, the median ETH gas fee reached as high as 700 Gwei. Below are the two tweets by the team at Glassnode highlighting today’s high ETH gas fees on the Ethereum network.
Meanwhile, the median #Ethereum gas price has massively spiked as well – reaching levels as high as 700 Gwei!
Chart: https://t.co/XFxGsbPLdE pic.twitter.com/5aDfNqF1WS
— glassnode (@glassnode) September 17, 2020
Ethereum’s Price Spikes Due to the UNI Airdrop
At the time of writing, ETH gas fees have dropped to a median value of 493 Gwei ($3.95). Also worth mentioning is that the rush to claim UniSwap tokens has resulted in the price of Ethereum spiking from the $365 area to $380. This can be attributed to the rush to acquire ETH to power the process of redeeming the 400 UNI per eligible address.