As of Tuesday and accelerating, an account that moves around ETH continues to pay for circular transactions.
For the second consecutive day, the unexplained activity is clogging the Ethereum network, this time increasing transaction costs 47 since 7 August. The smart contract, which users identified as possibly connected to a copy of a game, consumed more than 36.4% of gas, enough to cause congestion and increase transaction fees across the board. Commissions for regular transactions have risen above $ 1, which is considered relatively high by the Ethereum standards.
Subsequently, the use of gas continued to rise to 36.87%, leading to exorbitant prices for faster and more expensive transactions even for slow transactions. CryptoKitties immediately served as a canary in the mine, increasing the game fees to pay for the gas:
Assumptions surrounding the mine apparently meaningless transactions have included someone who deliberately pays for congesting the network or someone running tests for a future event. In any case, even the spammer paid exorbitant transaction fees in ETH. The suspicions of a rival scam are resurrected.
Another hypothesis sees ETH sent to a lottery-like game, likely to distort the participation of multiple users. ETH-based games are known to have very few users – so comments under transactions suggest that someone might create a fake participation.
Meanwhile, another contract that sent 0.1 ETH every few seconds consumed more than 15% of gas, further contributing to congestion. The second smart contract continued to increase its weight to over 16.9%.
At the same time, the total activity for the Ethereum network fell from peaks of over 700,000 transactions in 24 hours, to approximately 560,000 transactions in 24 hours, as regular users could avoid transfers during periods of congestion.
During the last market selling period, ETH market prices also suffered seriously, plummeting below the $ 400 level. ETH now has very low earnings compared to August 2017, since the price has dropped to $ 370.85. Network congestions are slowly undermining Ethereum's reputation and, despite numerous ICOs, the project continues to present problems.
Each of the two contracts has performed hundreds of transactions. At one point, the largest portfolio increased its ETH holdings to over $ 7 million, also receiving ETH. No ERC-20 tokens were sent, which do not link the activity to any project.
Some other projects have been influenced by high taxes, but even now there are very few users and ETH is being mostly sent between exchanges, or used to send other tokens. Usually, the congestion of the Ethereum network is clear, but the lack of logic and spam transactions seem more worrying after each attack.