Ethereum users now have to pay significantly higher transaction costs due to growing network congestion.

The average price of gas (the “fuel” for the Ethereum blockchain ) has quadrupled in the past month, reaching 41 gwei.

image by glassnode.com

A Ponzi scheme to blame

The responsible for the increasingly expensive transaction costs seems to be MMM Global, a Bernie Madoff-style Ponzi scheme that offers a constant daily return of 1% to its uninitiated investors.  

In mid-April, a cryptocurrency researcher found an address associated with the simulation, which engulfed up to 8.5% of all gas.

MMM Global appears to be the primary holder of Ethereum- based PAX stablecoin , although it has no affiliation with Paxos Standart.  

Due to a plethora of PAX transfers , the Ether network has become increasingly congested, which has resulted in transaction delays.

Cryptokitties on “Black Thursday”

Transaction fees can also increase during volatile market fluctuations that force traders to mix their coins. 

After the 36% ETH price collapsed on “Black Thursday” on March 12, it would take hours for a transaction to be processed. 

In December 2017, at the height of high altcoin, the ether-based game CryptoKitties scrambled the network when its share of transactions reached 12%.