Researcher Links Ethereum's Record Transaction Surge to Spam Attacks

Ethereum, the second-largest cryptocurrency by market cap, is experiencing a significant increase in activity, which blockchain security expert Andrey Sergeenkov attributes to a series of "address poisoning" attacks. This surge has seen transaction volumes reach an all-time high, with a seven-day average nearing 2.5 million transactions—double the figures from the previous year.

"Record-high Ethereum activity that everyone's celebrating is an address poisoning attack. Over $740K already stolen, and growing. This became possible thanks to the Fusaka upgrade. This attack is ongoing right now," Sergeenkov stated.

The Fusaka upgrade, which reduced transaction fees by over 60%, has made such spam attacks financially viable for scammers, with a conversion rate of just 0.01%. Sergeenkov noted that the unusual 80% increase in wallet creation correlated with stablecoin transactions, revealing that 67% of wallets received less than $1 in their first transaction.

Understanding Address Poisoning

To investigate the spam attacks, Sergeenkov analyzed USDT and USDC transactions under $1 from mid-December to mid-January, identifying addresses that sent funds to numerous wallets. These addresses are often smart contracts that distribute small amounts, or "dust," to random users, cluttering their transaction histories.

Scammers exploit this by creating addresses that closely resemble legitimate ones, leading users to mistakenly send funds to them. Sergeenkov reported that this method has already defrauded 116 individuals, resulting in losses exceeding $740,000, with one victim alone losing $509,003.

He criticized Ethereum developers for not prioritizing user security, stating, "You cannot scale infrastructure without first addressing user security!" while emphasizing that the industry celebrates record metrics despite ongoing financial losses for users.

New Records and Developments

In related news, the L2 network MegaETH has achieved a remarkable 47,000 transactions per second (TPS) during testing. Developers have announced a "global stress test" set to begin on January 22, aiming to process 11 billion transactions over a week under heavy load. This test will allow users to access various Web3 applications while the network is subjected to intense demand.

MegaETH seeks to establish itself as the "first real-time blockchain," focusing on speed and aiming to surpass 100,000 TPS. In an earlier token sale, the project raised $1.39 billion, with demand exceeding 27 times the available tokens.