Ethereum Now Handling 4x Bitcoin Network Fees

Ethereum is currently 4 times more in demand than bitcoin based on network fee data, processed transactions and other blockchain analysis data. Information available from blockchain tracking platforms and others that monitor network fees show that Ethereum gets more attention from users that are active on blockchains than Bitcoin does.

Data from Cryptofees.info for example shows that the Ethereum network generates four times more transaction fees than the Bitcoin network does. Cryptofees is a Gitcoin grant funded stats site by David Mihal.

The blockchain fee tracking platform shows that the Ethereum network generated $20.3 million in daily fees. Bitcoin, according to the platform data, has a daily transaction fee of $422,965 generated on its network. We can verify that bitcoin had 270,572 transactions in the past 24 hours, times 0.000038 BTC ($1.54) per transaction, this gives us about $400,000.

This represents a quarter of the fees that the Ethereum network generated and an indication that there are far more transactional activities on the Ethereum network. In fact, the network is ahead of the pack in terms of fees according to available data. This is an indication that irrespective of how valuable a token or coin is, the utility of its blockchain is still a determining factor on how much people are willing to pay to use its blockchain.

The Cryptofees data shows that other platforms that are among the high fee-generating blockchains include Uniswap with daily fees of $5.4 million, Binance Smart Chain, on which is generated daily fee of $1.55 million. The fourth blockchain in terms of fees generated on it is Avalanche, with $859,466. Other networks generating more daily fees than Bitcoin are SushiSwap and Trader Joe, generating $723,916 and $539,054 respectively.

Why Ethereum is High On Transactions

Bitcoin may be more valuable in terms of market capitalization. However, in terms of the utility of its blockchain, it is obvious that there are chains with higher utility that users use daily and are willing to pay even more to use.

This could be seen from the Ethereum blockchain which hosts a lot of decentralized applications, thereby gaining the confidence of large communities of users. Not even high gas fees has discouraged users who have vested interest in the services and applications built on the network.

It is interesting to note also that Ethereum second layer projects are handling $100k in fees a day. This, no doubt, contributes to the high amount of fees that the network generates. Some of the big names on the Ethereum L2 are Polygon, Loopring, OMG Network, Skale and ZKSwap. These are networks with high cap tokens. Polygon for instance has a market capitalization of $11.4 billion.

Nevertheless, their strengths are still in utility such as cross-chain ability and low fee transactions. These are features that many users of blockchain are looking out for, so the fact that the Ethereum network offers diverse solutions to the needs of people makes it an invaluable platform to users.

L2 Fees

Insomuch that L1 fees on the Ethereum network are very high, it is a relief that the scaling solution proffered on L2 blockchains gives users a reprieve. Not only does layer 2 offer users high utility, but low fees as seen from the image.

 

Share:

Author: Jinka Kamma

Jinka Kamma is passionate about the prospects of blockchain and the freedom cryptocurrencies afford people across borders. He holds small amounts of bitcoin and tether.