In 2023, while the Ethereum network was showcasing historically low gas fees, it experienced an unexpected surge in the last two days, witnessing fees exceeding 300 gwei. This increase was attributed to over 140,000 transactions being directed to a wallet address known as “Binance 14.”
Normally, the average gas fee on the Ethereum network hovers around 10 gwei. However, during this period, it was observed that Binance’s transactions were incurring fees above 300 gwei. This translates to approximately 30 times the standard fee.
Binance Confirms the Issue Originated from Them
Data provided by Dune Analytics linked the unusually high gas fees to Binance’s substantial ETH consolidation transactions. On September 21, it was noted that 145,500 addresses, believed to belong solely to Binance, conducted ETH deposit transactions. For these transactions, a total gas fee equivalent to 530 ETH was charged.
Binance confirmed that the significant costs users encountered were a result of the company’s “routine ETH consolidation” operations. A spokesperson for the exchange stated that the impact was unintentional and that the issue was quickly resolved.