- A single trader has paid 64 Ether in gas expenses to buy $155,000 worth of FOUR, a memecoin.
- The trader seems to have purposely raised their gas charge to shorten the transaction time to acquire the memecoin.
- Several investigators discovered that the trader had an unrealized profit of roughly $240,000.
A trader seems to have spent approximately $120,000 for a single transaction on the Ethereum (ETH) network as gas fees rise and memecoin trading continues to flourish on the network’s decentralized exchanges.
High gas costs are not uncommon on the Ethereum network, although they have become more unusual since the switch from the proof-of-work (PoW) protocol to the proof-of-stake (PoS) consensus process.
According to on-chain statistics, a trader spent more than 64 ETH in fees on Monday to get 84 ETH worth of FOUR, a newly-issued memecoin on the Ethereum blockchain that is presumably based on the Crypto Twitter meme “4”.
According to blockchain statistics, the average transaction cost for Ethereum was about $1.9 at the start of the year and rapidly increased to $4 by February. The average transaction cost at the time of writing is 0.012 ETH, or around $22.
The trader seems to have purposely raised their gas charge in order to shorten the transaction time to acquire the memecoin. This indicates that the trader paid more than $120,000 to get FOUR tokens valued at $156,000. Nevertheless, other sleuths pointed out that the trader was only the second organization to acquire FOUR – and is now sitting on an almost $240,000 unrealized profit.
A rise in memecoin excitement may be to blame for the reappearance of high gas fees, which prompted significant network activity and congested the system over the weekend. As a result of the excitement, trade volumes on decentralized exchanges increased, resulting in increased activity from Maximal Extractable Value (MEV) bots.
An MEV bot is designed to extract as much value as possible from each block on the Ethereum network by changing its content or order.
One of the primary reasons for the spike in Ethereum gas costs is the recent memecoin frenzy, which was fueled in large part by the feverish purchase of a new memecoin named Pepecoin (PEPE).
The current hot ball of crypto money is looking for jokes rather than fundamental moves, which has driven exceptionally high gas costs on the Ethereum network.
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