Cumulative Ethereum Transaction Fees in 2020 Supersede Bitcoin’s by a Long Shot

Cumulative Ethereum Transaction Fees in 2020 Supersede Bitcoin's by a Long Shot

This week the research and analysis team Coin Metrics published a report on how decentralized finance (defi) is “fueling Ethereum’s growth.” Meanwhile, the researchers also highlighted that Ethereum’s cumulative transaction fees in 2020 are now over $350 million and more than double the aggregated total of Bitcoin’s network fees.

Coin Metrics researchers and Nate Maddrey published a new report that discusses Ethereum’s defi evolution and the growth the blockchain has seen this year. However, with the new demand Coin Metrics highlights that ETH fees have “changed dramatically” and the authors note “high gas prices are becoming the new norm.”

A few defi project launches contributed to the dramatic rise in network fees including UNI, SUSHI, YAM, and YFI. The trading of the new tokens has been more prevalent on decentralized exchange (dex) platforms and because swaps are onchain this created a fee market. “This can lead to escalating transaction fees as users compete to be first in line for a trade,” the report emphasizes.

“ETH median transaction fee hit a new all-time high of $8.25 on September 2nd following the launch of SUSHI,” the study’s author adds.

Cumulative Ethereum Transaction Fees in 2020 Supersede Bitcoin's by a Long Shot

On Twitter, the Coin Metric’s team published a chart that shows Ethereum network fees this year are double the size of BTC’s 2020 fees. “Ethereum Total Transaction Fees during 2020 are now over $350m and more than twice Bitcoin’s,” the team’s Twitter account wrote. “By comparison, this time last year, cumulative Bitcoin Transaction Fees were $135M and Ethereum Transaction Fees were $27M,” the researchers added.

The report says that distributed ledger network fees are a “double-edged sword.” Essentially users are paying higher fees but miners are gathering all the revenue and in turn, the hashrate has increased exponentially. “As a result, Ethereum’s hash rate is climbing towards all-time highs— This is a good sign for Ethereum, as network security is critical for the long-term health and success of the blockchain.”

Although, the researchers underline that higher gas fees can make the ETH chain “prohibitively expensive” for a certain fraction of users. This can tip the scales for Ethereum whales who can swap large sums of tokens while smaller players could face a barrier to entry. “Ethereum’s median transfer value has increased to hundreds of dollars since the rise of defi, signalling that the network is shifting towards larger players,” the report points out.

What do you think about Ethereum fees growing double the size of Bitcoin’s network fees in 2020? Let us know what you think in the comments section below.

The post Cumulative Ethereum Transaction Fees in 2020 Supersede Bitcoin’s by a Long Shot appeared first on Bitcoin News.



from Bitcoin News https://ift.tt/2G58sNI

Comments

Post a Comment

Popular posts from this blog

L2 Crypto Project Blast Achieves $660M TVL Amid Mockery for Key Developer Recruitment

Image
Recent data reveals that Blast, the new layer two (L2) blockchain platform, has amassed a significant $660 million in value within its decentralized finance (defi) protocol. Concurrently, while accumulating a variety of crypto assets, the initiative has commenced a search for experienced senior blockchain developers. While Amassing $660M, L2 Blast Project Searches for Developers In recent times, Blast has emerged as a focal point of interest. This project, conceptualized by Pacman , the mind behind the non-fungible token (NFT) marketplace Blur, has rapidly gained traction. Within a span of less than a week, the platform’s total value locked (TVL) soared to approximately $400 million. Concurrently, Blast faced allegations of resembling a Ponzi scheme. During this period, Paradigm, a principal investor in the project, admitted that the team had overstepped in certain aspects of communication and implementation. Pacman has also countered the Ponzi scheme allegations and further cl
Read more

Harsh Laws Make Bitcoin Holders Consider Renunciation or Dual Citizenship

Image
As digital currencies become a mainstay in society, a great number of governments have enforced strict tax guidelines, severe money transmission rules, and tough regulations. Because of a few nation-states’ harsh rules against cryptos, there are individuals who plan to renounce their citizenship in order to become stateless. Some people will also attempt to get double-citizenship, as both of these acts may help sovereign individuals avoid government intrusion and theft. Also Read: As FATF Regulations Galvanize, Crypto Mixing Applications Are Targeted A Cryptocurrency Advocate’s Quest for Financial Sovereignty May Involve Hard Choices It’s been close to 11 years since the inception of Bitcoin and during the last few years government agencies and law enforcement have been cracking down on digital currency holders. In certain areas around the world, a few countries have extremely difficult crypto laws and stringent capital gains taxes. Countries like the U.S. have imposed strict regul
Read more

2021 Bitcoin Price Predictions: Analysts Forecast BTC Values Will Range Between Zero to $600K

Image
As bitcoin has touched new price highs on Thursday nearing the $50k handle, people have been curious as to where the price will go in the future. Meanwhile, despite the gains so far, a number of luminaries, analysts, executives, and proponents from the crypto space believe the leading crypto asset will reach between $60k to six-digits this year. Mike Novogratz Predicts $100K Bitcoin: ‘Other CFOs and CEOs Are Saying, What Should We Be Doing?’ Satoshi Nakamoto’s invention has gained mass appeal in recent times as the leading digital asset bitcoin ( BTC ) has reached its highest value ever in 2021. On Thursday morning (EST), BTC spiked to an all-time high (ATH) at $48,697 per unit. Earlier in the morning at around 2 a.m., bitcoin was exchanging hands for $44,485 and saw an 8.98% increase since then. At the time of publication, at 6:30 p.m. (EST) on February 11, 2021, bitcoin (BTC) is swapping for $47,821 per coin. With BTC so close to the $50k mark, people have been forecasting
Read more