Coinbase passes high mining fees to users Bitcoin on Ethereum exceeds $1 billion

On-chain data platform Glassnode revealed that the launch of the UniSwap (UNI) token has caused severe congestion on the Ethereum network, which has caused ETH miner fees to soar, with miners receiving nearly $1 million in fees in one hour.

Due to excessively high transaction fees, the US cryptocurrency exchange Coinbase Pro announced in a tweet today that the exchange will begin passing on network fees (also known as Gas on the Ethereum blockchain) to its customers. The ETH transaction fees generated by the exchange will be paid directly to the Ethereum miners who process transactions and protect the blockchain network.

The exchange said in a tweet that in the past, Coinbase Pro had been covering the fees for its customers, but now it cites wider crypto adoption due to applications such as DeFi, payments and other projects making the Ethereum network too expensive and congested, and the exchange can only charge a certain fee proportional to users transferring Ethereum on the exchange.

The craze caused by Ethereum is also inseparable from Bitcoin. According to statistics, Ethereum has tokenized more than $1 billion worth of Bitcoin, as the total supply of tokenized Bitcoin (BTC) exceeded 92,600 on Thursday, accounting for 0.42% of the total supply of Bitcoin. In January this year, less than 1,200 BTC were tokenized, worth less than $7 million.

Since its launch in early 2019, Wrapped Bitcoin (WBTC) on Ethereum is the largest tokenized Bitcoin project and has now minted more than 60,500 tokenized BTC, accounting for more than 65% of the total tokenized BTC supply.

The "huge buying demand" in the OTC market is one of the reasons for the rapid increase in the supply of tokenized BTC. With the rise of Defi liquidity mining and the increase in the total value of DeFi protocols , this value demand continues to grow. As previously reported by the media, Alameda Research claims that nearly 70% of all WBTC minted in August were locked. According to data queried by Dune Analytics , RenBTC, the second largest tokenized Bitcoin project, has issued 22,000 tokenized Bitcoins since May.