Monday, May 10, 2021

Someone Just Paid $7 to Move $1,000,000,000 on Ethereum in a Single Crypto Transaction

According to blockchain explorer, Etherscan, someone just paid $7.54 for transferring 74.6 million Synthetix Network Tokens (SNX), worth relatively $1 billion on the Ethereum network.

According to the report, the funds were transferred from a contract known as “Synthetix: Reward Escrow.”

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Someone Just Paid $7 to Move $1,000,000,000 on Ethereum in Single Crypto Transaction
74.6 million SNX moved for just $7.54. Image: Etherscan

Synthetix is a decentralized finance (DeFi) protocol for trading asset-pegged synthetic tokens on the Ethereum network.

It’s worth noting that this is one of the largest single cryptocurrency transactions in history. Last summer, a Bitcoin wallet came close to moving $1 billion after moving 101,857 BTC worth relatively $933 million at the time.

On the other hand, such a transaction would amount to roughly $4 billion if was initiated at current prices.

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While the SNX transaction is impressive by itself, Twitter users quickly pointed out that Ethereum transaction fees, nonetheless, are still a bit high for everyday use. A $7 fee becomes significantly move expensive if you only want to move a few dollars’ worth of tokens.

As reported back in May 2020, more than half of all Ethereum transactions were for less than $20, and 80% of transactions made were under $90. According to data scientist Alex Svanevik, co-founder of D5, this reflected how people use Ethereum in general.

He explained that Ethereum is the network of choice for many DeFi projects that are focused on micro-transactions. Additionally, it is a popular hub for mining pools, gambling apps and exchanges.

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However, since DeFi came to limelight around September 2020, Ethereum transaction fees skyrocketed. Just recently, they have surged by almost 400%, reigniting debates on whether Ethereum is suitable for mainstream adoption.

Solomon Odunayo
Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.

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