The cryptocurrency market is falling ahead of the Fed meeting on Wednesday. Besides leaders like Bitcoin and Ethereum, other altcoin projects are losing value. Ethereum, for example, hit a monthly high of $1,655 last week. However, it lost 13% in one day as the FED pressure swept the markets. However, the price drop with Fed pressure isn’t the only news about crypto. Nansen CEO Alex Svanevik made a striking claim about Binance.
Ethereum transactions on Binance made 3,000%
According to Alex Svanevik, Binance benefits from historically low gas fees on Ethereum to move its funds. As a result, Ethereum gas fee usage on Binance increased by over 3,000% in just one hour. Soon after, Binance CEO Changpeng ZAO (CZ) also spoke about the claim. CZ said Ethereum’s gas fee has seen historic lows. He then posted a tweet confirming that high Ethereum gas fee usage on Binance has increased by 3,000%. As Cryptokoin.com previously reported, the Ethereum network will release the Merge upgrade in September. With the upgrade, the leading altcoin will switch from the Proof-of-Work model to the Proof-of-Stake model. Thus, the network will be faster, less costly and environmentally friendly than its current state. Gas charges in Ether are gradually decreasing as the Merge upgrade approaches. The decrease in gas prices strengthens the probability of successful outcome of the model change.
Ethereum gas fees drop
Dune Analytics data reveals that average gas charges have reached 24 Gwei. In fact, this is the lowest level seen in gas prices in the last year. However, the gas fee for minimum transactions has dropped to 3 Gwei. The current gas fee is 4 Gwei. The fee for transferring ETH assets dropped to $0.34. In addition, the gas fee incurred in the transfer of ERC-20 tokens is $ 0.67. Based on these, Nansen CEO Alex Svanevik made an important announcement on July 26. The CEO shared that there has been a huge increase in the use of Ethereum gas fees on Binance.
In fact, a total of 28 ETH was spent on gas fees in just one hour on Binance. Accordingly, ETH gas fee usage on the exchange has increased by 3,048% in one hour and by 437% in the last 24 hours. However, Coinbase has not experienced such an increase in ETH gas fee usage. The exchange ranks second on the list, with increases of only 5.35% and 135% in one hour and 24 hours, respectively. Nansen CEO also stated that 90% of ETH transactions now use EIP-1559. EIP-1559 has an important role in Ethereum burning and Merge. With the Merge upgrade, EIP-1559 tokens will become deflationary.
ETH price drops with FED effect
Ethereum (ETH) price has dropped over 10% ahead of the FED meeting on July 27. The leading altcoin is currently trading around $1,415. Fear in the market expects a 100 basis point rate hike on the table. However, Fed Chairman Jerome Powell supports an increase of 75 basis points.
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