Ethereum [ETH] Fees Spike Thanks to Mysterious Project

• Congestion on the ETH network has reduced.
• VMPX, a new project was largely responsible for the increase in ETH fees.
• Market participants are concerned about the real utility of the token.

The Increase in Ethereum Fees

Fees generated by the Ethereum [ETH] blockchain increased by 57.8% between 3 July and the time of writing. The data, which was shared by IntoTheBlock, showed that the second-largest blockchain made $47 million within the said period. When Ethereum fees increase , it means that the network had experienced high volatility and a high level of traffic. Additionally, it implies that smart contracts have consumed gas due to consistent execution.

VMPX’s Contribution to Increase in Fee

The blockchain insight platform mentioned that VMPX [VMPX] contributed a whooping 18% to the fees. VMPX is a newly-launched cryptocurrency that operates as an ERC-20 and BRC-20 token. According to its official website , VMPX notes that it serves as a bridge liquidity token connecting the Bitcoin [BTC] and Ethereum [ETH] blockchain. Taking the largest share in ETH burned meant that VMPX was able to override the likes of Uniswap [UNI] and Arbitrum [ARB]. On 6 July, VMPX’s founder Jack Levin shared that VMPX had a gas mint action with 4500 participants producing $7 million worth tokens.

Real Utility Of Token Is A Concern

However, market participants are not very sure about how useful this project actually is and why such huge amount of ETH fee was needed for it, raising concerns about its real utility. 868system replied to Levin’s tweet stating “This is more or less like burning 50k Eth just because you can…” This sparked further debates among crypto enthusiasts if this could be classified as an act of malicious activity or greediness on behalf of Levin or any other entity associated with this project.

What Does The Future Hold?

It remains uncertain what effect this will have on Ethereum fees going forward but one thing is certain – projects like these will continue appearing every now and then and people will keep questioning their real purpose until they become more transparent about their activities or until their utility becomes clear enough for everyone else to understand why such large amount of Ethereum fee was necessary for them.

Conclusion
Ethereum fees spiked due to mysterious project called VMPX which took up 18% share in ETH transactions while market participants remain skeptical about its real utility despite its impressive minting action producing $7 million worth tokens with 4500 holders participating in it . It remains unknown what impact this would have on Ethereum fees going forward but projects like these would continuously appear raising more questions than answers .