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Reading: How an industrial-scale scam drives Ethereum trading to record highs due to low gas prices
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© 2025 All Rights reserved | Powered by All News Bitcoin
Ethereum

How an industrial-scale scam drives Ethereum trading to record highs due to low gas prices

January 21, 2026 12 Min Read
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How an industrial-scale scam drives Ethereum trading to record highs due to low gas prices

Table of Contents

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  • Scaling context
    • Ethereum undergoes main mainnet improve tomorrow – right here’s why try to be cautious of ETH’s “sloping sidetrack”
  • Ethereum recording exercise will not be including worth
    • Ethereum has simply solved a serious drawback that Bitcoin would not wish to resolve by itself community, however why?
  • Hooked on addresses?
    • Cryptocurrency dealer falls for handle poisoning rip-off twice, shedding 2.5 million USDT
    • Cryptocurrency dealer loses $70.5 million resulting from handle poisoning rip-off, file quantity

Ethereum is at present reporting its highest each day community progress in historical past. It is a statistical spike that ostensibly represents a major rebound in person exercise.

Over the previous week, Ethereum’s mainnet processed 2.9 million transactions, an all-time excessive, in accordance with knowledge from Token Terminal.

This exercise led to a pointy enhance in each day lively addresses, from about 600,000 in late December to about 1.3 million.

Importantly, this throughput explosion occurred whereas transaction prices remained negligible. Regardless of file demand, common transaction charges stay within the “penny” vary of $0.10 to $0.20.

Ethereum on-chain exercise (Supply: Token Terminal)

For a community whose charges have traditionally soared between $50 and $200 through the 2021-2022 NFT growth, this meant a basic shift in financial entry.

Nonetheless, forensic evaluation means that this enhance will not be completely natural. Whereas superficial indicators level to a return to the bull market, safety researchers warn that a good portion of this site visitors is being pushed by malicious actors.

These attackers are exploiting the community’s newly diminished charges to launch industrial-scale “handle poisoning” campaigns, concentrating on customers with automated scams disguised as professional exercise.

Scaling context

To grasp the sudden spike in quantity, we have to take a look at latest structural adjustments to the Ethereum protocol. For a few years, the community was highly effective however uneconomical for most individuals.

Leon Weidman, head of analysis on the Onchain Basis, identified that since coming into the cryptocurrency area, Ethereum’s mainnet charges have merely been too excessive for the common person.

He identified that the community is simply too costly for retailers, too costly for frequent use, and too costly for constructing consumer-scale apps.

Nonetheless, issues modified a few yr in the past as Ethereum builders systematically expanded the community whereas trying to decentralize and shield its safety.

See also  Did Ethereum Exchange Reserve show a strong strength in the new all-time low-eth price?

This resulted in three main protocol upgrades that transfer the roadmap ahead.

The primary was the Pectra improve in Could 2025, which elevated blob capability by growing the goal blobs per block from 3 to six and the utmost from 6 to 9. This successfully doubled the anticipated BLOB throughput.

This was adopted by a “Fusaka” community improve in December 2025, transport Peer Knowledge Availability Sampling (PeerDAS). This allowed validators to validate blob availability via sampling fairly than downloading the whole dataset, permitting for larger throughput whereas maintaining node necessities affordable.

Associated books

Ethereum undergoes main mainnet improve tomorrow – right here’s why try to be cautious of ETH’s “sloping sidetrack”

Fusaka on mainnet will likely be activated at 21:49 UTC, with BPO forks and blob capability will increase on December ninth and January seventh.

December 2, 2025 · gino matos

Most lately, the Blob Parameters Solely (BPO) fork in January 2026 elevated the blob goal from 10 to 14 and the utmost to 21. These sensible updates had been designed to unlock vital capability for the blockchain community.

The economics of those upgrades shortly turned obvious because the community’s mainnet charges dropped considerably and easy transactions turned low cost once more.

Waidmann identified that constructing instantly on high of Layer 1 has turn into viable at scale, prompting prediction markets, real-world belongings, and funds to return to mainnet.

On the similar time, stablecoin transfers on the community reached roughly $8 trillion within the fourth quarter.

Ethereum recording exercise will not be including worth

Whereas file exercise exhibits indicators of blockchain dominance, on-chain knowledge suggests these actions will not be including actual worth to the community.

Knowledge from Alhpractal exhibits that the Metcalfe ratio, which compares market capitalization to the sq. of the variety of lively customers, has declined. This means that evaluations haven’t saved tempo with precise community deployments.

Ethereum metacarfe ratio (Supply: Alpharactal)

Moreover, Ethereum’s adoption rating is at present at degree 1, the bottom degree in its historic vary. This displays decrease valuations and a cooling market relative to on-chain exercise.

With this in thoughts, Matthias Seidl, co-founder of GrowThePie, recommended that the community’s enhance in exercise might not be natural.

He gave an instance of a single handle receiving 190,000 native ETH transfers from 190,000 distinctive wallets in a single day.

See also  Chinese Whale Frezi donates 2000+ ETH before the tragic end

Seidl identified that whereas the variety of wallets receiving native transfers has remained comparatively secure, the variety of wallets sending native transfers has elevated considerably (doubling). He highlighted that many native transfers (vanilla ETH sending) solely use 21,000 fuel, making it the most affordable type of EVM transaction.

Ethereum EVM transaction prices (Supply: GrowThePie)

These now account for nearly 50% of all transactions. By comparability, sending an ERC20 token prices round 65,000 fuel, and one stablecoin switch requires the identical quantity of fuel as three native ETH transfers.

Associated books

Ethereum has simply solved a serious drawback that Bitcoin would not wish to resolve by itself community, however why?

Ethereum co-founder mentioned PeerDAS and zk-proofs have lastly damaged the scaling ceiling, making Bitcoin’s conservative design appear deliberately gradual.

January 10, 2026 · Liam Akiva Wright

Hooked on addresses?

In the meantime, it has been recommended that Ethereum’s latest surge in on-chain exercise will be traced again to previous scams that had been repackaged for an period of decrease charges.

Safety researcher Andrey Sergeenkov famous that since December, a collection of handle poisoning campaigns have exploited low fuel prices to inflate community metrics whereas seeding transaction historical past with comparable addresses geared toward tricking customers into transferring actual funds to attackers.

The mechanics of those assaults are easy. Scammers generate a “poisoning” handle that resembles the goal’s professional pockets handle by matching the primary and final characters. After the sufferer completes a standard switch, the attacker sends a small “mud” transaction to the sufferer, inflicting the spoofed handle to look of their latest historical past.

Maybe the person will later copy a well-known handle from the exercise feed with out checking the complete string.

Associated books

Cryptocurrency dealer falls for handle poisoning rip-off twice, shedding 2.5 million USDT

Handle poisoning scams proceed to take advantage of person errors, costing crypto merchants thousands and thousands of {dollars}.

Could 26, 2025 · Oluwaperumi Adejumo

With this in thoughts, Sergenkov ties the proliferation of recent Ethereum addresses to that playbook. He estimates that new handle creation is about 2.7 instances the 2025 common, peaking at about 2.7 million new addresses within the week of January twelfth.

See also  Analysts call Ethereum a strategic purchase as ETF inflow surges and prices are getting closer.
Coping with dependancy victims (Supply: Andrey Sergeenkov)

He broke down the dynamics behind the expansion and concluded that round 80% is pushed by stablecoin exercise fairly than intrinsic person demand.

To check whether or not this appeared like poisoning, Sergenkov appeared for telltale signatures, addresses that acquired stablecoin transfers of lower than $1 as the primary interplay.

By his calculations, 67% of recent addresses match that sample. In absolute phrases, we discovered that 3.86 million addresses out of 5.78 million addresses acquired “mud” as their first stablecoin transaction.

He then narrowed his search to senders, concentrating on accounts that transferred lower than $1 in USDT and USDC between December 15, 2025 and January 18, 2026.

Sergeenkov counted distinctive recipients for every sender and filtered out recipients who delivered to no less than 10,000 addresses. What has emerged, he mentioned, are sensible contracts designed to industrialize campaigns. These are codes that may fund and reconcile a whole bunch of poisoning addresses in a single transaction.

One of many contracts he reviewed included a function labeled “fundPoisoners,” which he described as distributing small quantities of ETH for stablecoin mud and fuel to giant quantities of poisoning addresses directly.

These addresses then unfold and ship mud to thousands and thousands of potential targets creating deceptive entries of their pockets transaction historical past.

This mannequin is scale-dependent as a result of most recipients won’t ever be fooled by it, however the economics will work if solely a small fraction are fooled by it.

Sergeenkov places the efficient conversion price at round 0.01%, suggesting that the enterprise is constructed to tolerate excessive failure charges. Within the dataset he analyzed, 116 victims collectively misplaced roughly $740,000, with one loss totaling $509,000.

Traditionally, gate parts have been prices. Handle poisoning includes thousands and thousands of on-chain transactions that don’t instantly generate income until the sufferer by chance transfers funds.

Associated books

Cryptocurrency dealer loses $70.5 million resulting from handle poisoning rip-off, file quantity

Cybers mentioned this incident might be the very best worth misplaced to handle poisoning fraud.

Could 3, 2024 · Oluwaperumi Adejumo

Sergenkov argues that Ethereum’s community charges made it troublesome to justify a high-volume sending technique till late 2025. However with transaction prices about six instances decrease, the risk-reward calculus abruptly shifted within the attacker’s favor.

With this in thoughts, Sergenkov argued that increasing Ethereum’s throughput with out growing safety on the person facet has created an setting the place “recording” exercise is indistinguishable from automated abuse.

In his view, the business’s obsession with headline community metrics dangers obscuring the darkish actuality that cheaper blockspace will simply subsidize mass-market scams as professional adoption, with retail customers bearing the brunt of the losses.

(Tag to translate) Ethereum

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