ETH Network Fees Surpass BTCDavid Kemp
The crypto market reports on network daily fees over this weekend and says that ETH has finally topped BTC in this regard. Daily Ethereum network fees, according to most analysts, have surpassed daily network fees coming from Bitcoin. The most essential aspect is that the gap between them has been steadily growing and increasing in the past few days. Let’s have a closer look at what happened a few days ago and try to analyze the situation.
The crypto community keeps track of the latest trends and sees how ETH’s daily network fees increased and topped the fees of the BTC’s network two days ago. The data that the crypto market presents was taken from Glassnode, one of the most prominent teams that have experience in analyzing the on-chain market.
The firm shows that June 6 was one of the days they needed to mention in their reports since on that day ETH network fees kept topping BTC’s fees for two consecutive days. Last Saturday, the total amount of fees that the market had spent on the ETH’s network added up to four hundred and ninety-eight thousand USD while we see that over the same period BTC’s fees were three hundred and eight thousand USD.
The next twenty-four hours were successful for ETH since the gap was widening. By the end of the second day, June 7, ETH reached five hundred and forty thousand USD and BTC had two hundred and fifty-eight thousand USD.
What ETH Network Fees Have Shown This Year
Crypto market researchers state that this was the second time ETH network fees had surpassed BTC’s fees in 2020. In the mid-March, the crypto community witnessed a sudden spike in ETH’s network fees, which occurred on June 12. This made a total of around eight hundred thousand USD and proved to have significantly exceeded the amount that had been paid by BTC customers on that day. The ETH’s network was going through what is now called ‘congestion’. Many believe that this triggered customers to pay greater amounts of fees for the transactions they performed.
One can notice a lot of comments from Twitter users who are discussing the most recent events and data. They mention the so-called ‘feepening’ and think that the recent difficulty adjustment was the reason why BTC’s mempool was cleared on June 4. There were not too many pending transactions, which visibly decreased transaction fees charged by the network.
On that day, they dropped to the one-dollar mark. We should remind, though, that an average fee for a BTC transaction could cost almost 6.6 USD at the end of May. The figure was high due to the state of the entire network right after the halving event.
ETH’s mempool at present seems to be clogged. There are more than one hundred and three thousand pending transactions. This might be the major reason why the network fees have reached these numbers. Another fact is that stablecoin transfer value has achieved its heights and hit a new record this month. Users know that PAX, USDT, and USDC, which are the most popular stablecoins, operate on the ETH’s network. Their popularity has also influenced and increased the network’s activity.
Scalability issues that Ethereum 2.0 is experiencing need a prompt solution. The team will review the possible upgrade plan which they have scheduled for July. As the mass media outlets report, the network will move to a PoS consensus. The step is necessary to enable stakers rather than miners to feel responsible for network validation. Analysts received an ETH 2.0 scaling solution offered by an anonymous source on Medium.
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