Ethereum Fees And Daily Transactions Spike Thanks to Shiba Inu (SHIB), Tether & Uniswap
Much like in May, Shiba Inu is the biggest gas guzzler on the second largest network, as it launched ShibaSwap. NFTs through Axie Infinity and OpenSea, and MetaMask are also the contributors.
Daily transactions on the Ethereum network are now back over 1.35 million, which had fallen to just above 1 million, but still down from the 1.7 million peak in early May.
Fees are also seeing a spike, with average transaction fees making their way towards $10 after falling to $2.33 in late June. At its peak in May, it soared past $70.
Additionally, gas fees are recording an uptick to 55 Gwei after falling and remaining in single digits for a couple of weeks in June.
According to Etherscan, Tether and Uniswap are the biggest gas guzzlers today, followed by addresses that belong to the Shiba Inu coin project. At 5th and 9th place again is the SHIB project, all of which together accounts for more than 18% usage in the past 24 hours.
So you may be asking yourself, what just kicked of #DeFi season?
Look no further than your favorite dog coin, $SHIB.
Shiba Inu coin is currently the number #1, #3, and #4 biggest $ETH gas guzzlers on Ethereum
— Joe McCann ◎ (@joemccann) July 6, 2021
The popular dog coin is actually launching a decentralized exchange (DEX) called ShibaSwap. In a single day, ShibaSwap attracted $1 billion in total value locked (TVL).
The token SHIB is currently trading at $0.00000874, down 77% from its all-time high of $0.00003791 hit two months back.
Ethereum co-founder Vitalik Buterin was the one who sent the SHIB prices crashing in May after selling 50% of its supply (about $6 billion worth at the time) which was sent to his wallet unbeknownst to him, in place of burning the tokens. Vitalik actually gave these coins to charity, saying he doesn’t want that kind of power over a project.
— Shib (@Shibtoken) July 6, 2021
Amidst this, some critics point out that aping into ShibaSwap for a four-figure APR might be a risky venture, given that its smart contract allows a single address to migrate the deposited funds.
“TLDR: All the staked funds can be rugged by the devs at any moment #WarOnRugs,” said Valentin Mihov, ex-CTO at data provider Santiment.
Since then, the project has addressed the concern and made changes, moving the owner to multisig.
“ShibaSwap devs reached out and transferred the owner role to a 6/9 multisig. They also informed they plan to deploy a timelock,” said Banteg, a core developer at DeFi bluechip Yearn Finance.
Minimum Viable ShibaSwap Rug
All liquidity can be easily stolen by a single address. Why did people put over $120 million in it again? pic.twitter.com/ONOKyYbjts
— banteg (@bantg) July 6, 2021
Besides Shiba Inu, the popular NFT game Axie Infinity is the fourth-largest gas guzzler. As we reported, while the NFT space has been cooling down, the play-to-earn game Axie Infinity is seeing the highest volume at $84.1 million, 769% higher than Q1 2021 and reaching over 4,700 daily unique on-chain users, an increase of 360.61% from the previous quarter.
The AXS token has surged 300% in less than two weeks and is up 2,145% YTD.
NFT marketplace OpenSea and popular Ethereum wallet MetaMask, which earned $7 million in the past 30-days (4th highest) and $31.7 million in the last 3-months (3rd highest), are also among the top ten gas guzzlers on the second-largest network.