Ethereum (ETH) continues to be the leader when it comes to generating fees in the blockchain world, indicating its unwavering adoption and growth.
In an April 10 report, blockchain data firm Token Terminal revealed that Ethereum generated more than double the fees of its closest competitor over the last six months, raking in a staggering $743 million in cumulative daily fees.
Meanwhile, TRON, Ethereum’s closest rival, generated less than half at $282 million, with bitcoin (BTC) generating just under $80 million during the same period.
Ethereum’s low fees remain a challenge for non-whale users
Token Terminal emphasizes the importance of examining fees as a key metric, as it highlights which protocols are actually in use and signals continued growth for the ecosystem. Uniswap is close behind and ranks third with $269 million in commissions generated in the last six months.
Also, BitInfoCharts reports Relatively low average transaction fees for Ethereum of around $4.70, making it less painful for users than expected. However, these fees still present a challenge for non-whale users, who may prefer to explore alternative networks.
Layer 2 networks offer solutions
Layer 2 networks have emerged as a promising solution to address high transaction costs, with Arbitrum One ranking sixth in terms of fees generated. According Crypto Feesgenerated a daily average of $236,000 in fees over the past week.
L2 rates reports that it only costs $0.06 to make an Ethereum transaction on the Aribtrum network and $0.17 for a token swap. However, due to optimistic accumulation technology, it can take up to a week to withdraw Ethereum from the network, which has limitations.
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Despite Ethereum’s undeniable dominance in generating fees, its prices have remained stagnant for the past 24 hours, hovering around $1,859. It remains in the shadow of bitcoin, which has been consolidating for the past three weeks. With the upcoming Shanghai (Shapella) hard fork on April 12, more turbulence could be on the horizon.
