Recent data indicates that Bitcoin's transaction fees have decreased after the post-halving spike, while Ethereum fees are on the rise. As such, the total amount of fees spent on the Ethereum network has surpassed Bitcoin, and the gap continues to grow.
The “Feepening” Ethereum vs. Bitcoin
According to information from cryptocurrency data company Glassnode, Ethereum network daily rates surpassed Bitcoin on June 5 for the second time this year. At the time, the amounts were almost $ 500k for Ethereum and $ 308k for Bitcoin fees.
Over the next two days, the gap between the two has expanded to $ 540k for fees on the Ethereum network, while Bitcoin totals $ 253k.
From BTC's perspective, the fees have gone through a roller coaster around the third halving, which took place in May. Transactions on the Bitcoin network they were increasing, and the average rate reached a new 11-month high of $ 5.82.
In less than two weeks, however, the cost of transacting on the BTC blockchain submerged by almost 80%.
Bitcoin's mempool, which measures pending BTC transactions pending confirmation, was clogged with almost 60 MB of such transactions before halving. Congestion continued to increase after the event, peaking at 94MB on May 21. Once it was cleared as the number of BTC transactions decreased, which took a few weeks, fees again dropped to an average cost of less than $ 1.
The rise in fees on the Ethereum blockchain could be attributed to several factors. First of all, most stablecoins employ their network, and their role within the cryptocurrency market has been growing significantly in recent months. The transferred value of ERC-20 stablecoins on the Ethereum network has increased to almost 80%, according to a report of April.
Tether (USDT), the most widely used stable currency, has been coining New currencies regularly to cope with the growing demand from traders. ERC-20 based tokens still represent the majority of them.
Additionally, fees on the Ethereum network increase in value as initiated transactions increase. While Bitcoin's mempool has normalized after doing so, Ethereum has been on the rise. As of this writing, there are more than 100,000 pending transactions.
As previously reported, Ethereum's blockchain saw thousands of linked transactions across the network, all of which led to a single address belonging to MMM Global operators: an MLM ponzi scheme that offers a 1% return on investment per day .
The next Ethereum 2.0 it aims to handle similar scaling problems by changing from the current working proof consensus algorithm to proof of stake.