Cryptocurrency exchange Coinbase Pro announced that it will stop paying user fees for transactions on the Ethereum network due to the rise in the cost of gas on this blockchain.
Previously, Coinbase Pro covered the associated costs of traders on its own. However, Coinbase Pro will charge a commission for each transaction based on its own assessment , as the site’s management said to ensure effective user interaction with the exchange and not delay the processing of transactions. However, in some cases, the fees paid by Coinbase Pro may differ from the estimated. All fees charged will be displayed when the transaction is made.
This decision of the exchange is due to the growth of fees in the Ethereum blockchain due to the increased activity in the cryptocurrency market. For example, in recent weeks, the price of gas on the Ethereum network has exceeded 100 Gwei. In addition, after the launch of the UNI token of the Uniswap decentralized exchange, the number of pending transactions in Ethereum temporarily increased by 30%. Against this background, gas charges jumped to 700 Gwei.
Coinbase Pro executives explained that the exchange has always covered user fees for their own benefit, however, due to the widespread adoption of decentralized finance (DeFi) applications, the load on the network has increased. At the same time, the exchange will not charge a fee for sending funds from one Coinbase wallet to another or for making transactions between verified accounts of the site.
Recall that, as Coinbase reported last month, after the start of grouping transactions for the withdrawal of bitcoin, commissions for site users decreased by 75%.