On-chain data shows that bitcoin blockchain users had to pay the same total fees as ethereum last quarter.
bitcoin users paid $440 million in transaction fees last quarter
As market intelligence platform IntoTheBlock noted in a new article x.com/intotheblock/status/1806619604602523751″ target=”_blank” rel=”noopener nofollow”>mail On x, bitcoin has seen a sharp rise in transaction fees over the past quarter. “Transaction fees” here naturally refer to the amount that senders on the blockchain have to attach to their transfers as compensation for validators.
The average fee on the network is generally a reflection of the activity that occurs on it. During periods of high traffic, users have no choice but to pay a large amount of fees if they want their transfers to be completed in a reasonable amount of time.
This is because the network only has a limited capacity to handle transactions, so validators naturally prefer to put transfers with the highest fees into the next block first.
As users compete with each other to advance first, rates can skyrocket. However, in times of low activity in the chain, senders have no incentive to pay high fees, so their value remains low.
Below is an infographic shared by IntoTheBlock showing how the total fee amount between bitcoin and ethereum compared in the second quarter of this year.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/Bitcoin-is-now-as-expensive-as-Ethereum-in-fees-according.jpeg" alt="bitcoin Transaction Fees” width=”901″ height=”507″/>
Looks like the fees has been almost the same for the two networks recently | Source: x.com/intotheblock/status/1806619604602523751/photo/1" target="_blank" rel="noopener nofollow">IntoTheBlock on x
As you can see above, the bitcoin network recorded total transaction fees of around $440 million over the past three months. This reflects an increase of almost 61% from the previous quarter.
While fees have increased considerably in the case of btc, the same has not been the case for eth. It would appear that ethereum users paid 63% less fees during this period compared to last quarter.
Previously, eth fees were significantly higher than btc, giving the network a reputation for being expensive. However, with this drop, total network fees dropped to $441 million, which is only a million dollars more than the original cryptocurrency has ever had.
Now, what is causing these trends? In the case of bitcoin, the introduction of the Runes protocol in April is the main driver of growth. This protocol, which allows users to mint fungible tokens on the network, found immediate popularity and increased btc transaction activity.
As for ethereum's downfall, the analytics firm notes that transactions have moved to layer-2 solutions in this period. Layer-2 blockchains are built on top of a primary network to improve transaction throughput.
While both eth and btc have relatively high transaction fees, Litecoin (LTC) has remained the cheapest network recently, as IntoTheBlock has shared in a x.com/intotheblock/status/1806644992506462476″ rel=”nofollow” target=”_blank”>reply to the position.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/1719670006_60_Bitcoin-is-now-as-expensive-as-Ethereum-in-fees-according.jpeg" alt="ethereum vs bitcoin vs Litecoin” width=”1325″ height=”743″/>
The data for the average transaction fees on the various top cryptocurrency networks | Source: x.com/intotheblock/status/1806644992506462476/photo/1" target="_blank" rel="noopener nofollow">IntoTheBlock on x
btc Price
bitcoin has not been able to significantly recover from its recent drop as its price is still trading around $60,800.
x/ZF3eKwdk/” alt=”bitcoin price chart” width=”1534″ height=”854″/>
The price of the coin appears to have been moving sideways over the last few days | Source: BTCUSD on TradingView
Featured image by Dall-E, IntoTheBlock.com, chart by TradingView.com
