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The Ethereum network has usually been criticized for the number of failed transactions that occur on it and how it leads to users losing their money as a result of this. This onslaught was recently renewed after a figure in the crypto community showed the staggering amount that has been lost from failed transactions.
In a post on his X (formerly Twitter) platform, the Marketing and Communications Director of Blockstream, Fernando Nikolić, shared a screenshot that showed that Ethereum users had lost over $100,000 due to failed transactions. Interestingly, the $100,000 value happened to be only for the top 10 transactions in the screenshot, with Nikolić noting that there were other ones.
From the screenshot, one can see how a particular user lost over $38,000 in gas fees from a single transaction. The second user on the list lost over $17,000 in gas fees, with others on the list also losing thousands of dollars in gas fees despite the fact that the transaction failed. Usually, gas fees paid on the Ethereum network are gone forever, irrespective of whether the transactions succeed or fail.
Noteworthily, eight out of the transactions from the screenshot occurred back in May during the period of the frenzy around the meme coin PEPE, which caused an unusual surge in traffic on the Ethereum network.
Failed transactions are known to occur rampantly during such periods because a surge in activity on the network leads to a significant increase in gas fees, with some users falling short of the required gas fee (at the point of executing their trade) needed to process a transaction, which causes it to fail.
ETH price steady at $1,880 | Source: ETHUSD on Tradingview.com
In his post, Nikolić referred to the failed transactions on the Ethereum network as “hot garbage.” Although his post could just be about a concerned member of the crypto community calling out the network, it bears mentioning that he happens to be the second Bitcoin maximalist calling out the network in the space of a week.
Another Bitcoin maximalist, Bit Paine, had earlier suggested that the network was a scam. The crypto pundit hinted that the Ethereum network has helped facilitate the creation of several “digital penny” stocks, which he also referred to as unregistered securities.
However, both statements could be unrelated and simply two astute members of the Bitcoin community, showing why they believe Bitcoin remains supreme.
At the time of writing, Ethereum is trading above $1,800, up in the last 24 hours, according to data from CoinMarketCap.