This token, which started as a harmless meme coin, has amassed an enormous sum of 5,300 ETH (approximating to a value of $10 million) in gas fees over a mere three weeks. The massive scale of gas consumption has raised apprehensions about the token's possible impact on the Ethereum network and the broader cryptocurrency market.
Data extracted from DuneAnalytics, which scrutinized 413,283 PEPE Uniswap transactions, has revealed a substantial level of gas consumption. This can be attributed to the expanding use of the Ethereum network and the exponential surge in transaction fees. Despite recent changes in the fee structure, the network is still grappling with scalability.
I downloaded 413,283 PEPE Uniswap transactions from @DuneAnalytics— Alex (@thiccythot_) May 5, 2023
PEPE traders have burned ~5,300 ETH ($10M) in gas over the past 3 weeks 🤯
However, it is imperative to acknowledge that the substantial growth of PEPE also brings some advantages to the market. As the token's fame drives transaction fees higher, validators earn more revenue. This added income could incentivize more validators to join the network, thus improving its overall security and stability.
While the effect of PEPE's gas consumption on the Ethereum network is undoubtedly substantial, it is crucial to assess both the positive and negative aspects of this phenomenon.