A Trader Wastes $120K On Gas Fee to Purchase a Memecoin Worth $155K

One memecoin exchange cost a trader an extra 76% of their entire purchase price in gas fee.

Source: bmbusinessnews.com

A single trader has purchased a whopping $155,000 worth of Four (FOUR) memecoin for 64 Ether, or $118,000 in gas fee costs. The lone trader spent an astounding $119,157 in ether to execute an Uniswap deal that traded 84 Wrapped Ether (WETH) over 13.8 billion FOUR tokens, based on an update from the well-known blockchain tracking website Whale Alert.

It seems that the dealer unilaterally increased their gas fee price to shorten the time needed to complete the transaction to buy the memecoin. The trader in issue is holding 133 ETH ($245,667) in unused earnings on their stake in the memecoin, claims fictitious Twitter account FlurETH.

Tweet by Whale Alert

A number of well-known Ethereum supporters have praised the increased activity for its revenue-generating impacts and long-term deflationary impact on the supply of Ether, which has caused gas taxes on the Ethereum network to become a topic of discussion within the crypto community. Others have criticized the costs, arguing that widespread adoption would never happen unless the network is made more affordable.

According to Cointelegraph, the current memecoin hysteria, which was largely fueled by the irrational acquisition of a new memecoin named Pepe (PEPE), is one of the primary causes of the spike in Ethereum gas fee costs. The average Ethereum transaction cost is now sitting at $22.98, which is the highest amount seen since May 12, 2022, when the average fee peaked at $31.11.

Average Ethereum transaction costs over the previous 12 months. Source: Etherscan

The maximal accessible value trading bot that is leading large memecoin trades is another important factor in the sharp increase in gas fee prices. The increased network utilization has been extremely profitable for the renowned MEV bot and sandwich attacker, known solely by the username jaredfromsubway.eth. 

A sandwich attack occurs when an attacker sandwiches the target's transaction between two of their own transactions in an attempt to alter the price and profit from the user. Jared made a staggering $950,000 profit on the sandwich assaults on April 18. On the Ethereum network, Jared was also one of the biggest gas consumers. Jared spent 455 ETH in transaction fees and 7% of the network's gas on April 20.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.