The Pepe (PEPE) coin has swept the cryptocurrency industry in recent weeks. In just three weeks, this ostensibly innocent meme coin managed to burn up an incredible 5,300 ETH (about $10 million) in petrol costs. The effect of the token on the Ethereum network and the larger cryptocurrency market has been questioned given this token’s high gas consumption.
The analysis of 413,283 PEPE Uniswap transactions using data from DuneAnalytics revealed significant petrol use. The Ethereum network’s expanding utilisation and rising transaction costs are the main causes of this. Ethereum’s fee structure has just changed, but the network is still having trouble scaling efficiently.
One can contend that PEPE has a negative effect on the Ethereum network since it uses up a lot of resources that might be used in other ways. The network may be strained by this excessive gas use, which might result in longer transaction times and higher costs for other users. Additionally, some people may perceive the existence of such a volatile and speculative token on the Ethereum network as an indication of market instability or immaturity, which might hurt the market’s reputation.
It’s crucial to remember, meanwhile, that the market gains from PEPE’s rapid expansion in several ways. The popularity of the coin has led to an increase in transaction fees, which in turn has increased validators’ income. This extra money could encourage more validators to join the network, enhancing network security and stability overall.
While there is no question that PEPE’s gas consumption has a substantial influence on the Ethereum network, it is important to take into account both the advantages and disadvantages of the situation.
