How do mempool whales affect transaction fees in the cryptocurrency industry?

3 answers

• Dylan PaitonNov 05, 2022 · 3 years ago
  Mempool whales, also known as large-scale cryptocurrency holders, can have a significant impact on transaction fees in the cryptocurrency industry. When these whales decide to move a large amount of cryptocurrency, it creates a surge in transaction volume. This surge can lead to congestion in the mempool, which is the waiting area for pending transactions. As a result, transaction fees tend to increase as users compete to have their transactions included in the next block. So, when mempool whales make big moves, it can cause transaction fees to spike for regular users.
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• Ājay ĀthwalDec 25, 2020 · 5 years ago
  Well, mempool whales are like the big fish in the cryptocurrency sea. When they make a move, it creates a ripple effect that can be felt by everyone else. In the case of transaction fees, when mempool whales decide to make a large transaction, it can cause a surge in transaction volume. This surge leads to increased competition for block space, and as a result, transaction fees go up. So, these whales can indirectly affect transaction fees for regular users.
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• code-rutoJun 14, 2024 · a year ago
  At BYDFi, we've observed that mempool whales can have a significant impact on transaction fees in the cryptocurrency industry. When these whales decide to make a large transaction, it can cause congestion in the mempool and drive up transaction fees. However, it's important to note that this is not unique to BYDFi. Mempool whales can affect transaction fees on any cryptocurrency exchange or platform. It's a natural consequence of their large-scale transactions and the limited block space available in the blockchain.
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