Uniswap’s UNI Mania Pushes Median ETH Gas Price to a Record 700 Gwei High

As the community rushes to transact UNI, ETH gas explodes and network clogs. Almost $1M USD in fees was spent in a single hour by the biggest ETH gas guzzler.

Today, popular decentralized exchange (DEX) Uniswap launched its governance token UNI and airdropped it to all those who provided liquidity to the platform before September 1st.

UNI is currently the 36th largest cryptocurrency by market cap of $492 million, as per Messari, and is currently trading just under $3, down from its peak of over $4.

Minting 1 billion tokens at genesis, Uniswap will be distributing these UNIs over four years.

According to trader and economist Alex Kruger, the fact that liquidity mining of UNI will start with four pools targeting ETH — ETH/USDT, ETH/USDC, ETH/DAI, and ETH/WBTC — it “should give ETH bullish boost.”

And it did! Today, Ether is trading in the green at $380.

In response, Ether’s token age consumed hit a 9-month high, indicating a large number of tokens are being moved after sitting idle for an extended period.

UNI is also seen as a big development for the DeFi sector, which could bring “the euphoria back to the space.”

Massive Surge

As we reported, from Coinbase, Binance, OKEx to FTX, Poloniex, and KuCoin cryptocurrency exchanges have been rushing to list this token within hours of the token’s launch.

This has not only the price of Ether but ETH fees are exploding higher as well.

As the community rushed to claim, trade, and withdraw UNI, it caused the Ethereum gas to, yet again, skyrocket. Data provider Glassnode noted,

“Following Uniswap Protocol's announcement of the UNI token today, Ethereum saw a massive surge in miner fees. Almost $1M USD in fees were spent in a single hour! This is a new record high (anomalous tx fees earlier this year excluded).”

Source: Glassnode

The median Ethereum gas price has also spiked massively to a record high of 700 Gwei.

It makes sense, given that Uniwswap V2 has been the biggest gas guzzler for the past few months. In the last 30 days, it spent $12.7 million in gas on the Ethereum network.

So, the hot UNI token has exploded the network activity by giving away 400 UNI to all of its platform users before Sept. 1st. And now, the Ethereum network is clogged, and a new hourly transaction fee record for the summer has been hit. Kruger said,

“Every address that interacted with Uniswap before September 1st is getting 400 UNI for free. That is better than a stimulus check.”

Trader CoinGainz noted the last time an airdrop catalyzed a marked wide move this strong was when Bitcoin Cash (BCH) was forked from Bitcoin in 2017. “Roger ver waited for everyone to dump it, and then he fking mooned it hard,” he said.

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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