Daily Ethereum network fees have surpassed those of the Bitcoin network and the gap is growing, recent data suggests.
Daily Ethereum network fees surpassed those of the Bitcoin (BTC) network for two consecutive days on June 6 and June 7, data obtained by on-chain market analysis firm Glassnode shows.
According to Glassnode, on June 6, the total amount in fees spent on the Ethereum network added up to $498,000, compared to Bitcoin’s $308,000. The gap continued to widen the next day, totalling $540,000 and $258,000 represectively.
The “feepening”
This is the second time Ethereum network fees have topped Bitcoin’s this year. On March 12, there was a sudden spike in Ethereum network fees, which totalled almost $800,000, greatly exceeding the amount paid by Bitcoin users on the same day. The Ethereum network was experiencing major congestion at the time, which likely prompted users to pay more fees for their transactions.
This time around, the reasons behind what Twitter commentators are calling the “feepeninig” seem similar.
First, Bitcoin’s mempool has recently been cleared as a result of the latest difficulty adjustment, which took place on Thursday. The lack of pending transactions has greatly reduced transaction fees on the network, which have dropped to the $1 mark. For comparison, on May 20, an average Bitcoin transaction could cost up to $6.6 due to the post-halving state of the network.
Ethereum’s mempool is currently clogged, with over 103,000 transactions pending, which partly explains the latest network fees numbers. Moreover, stablecoin transfer value has been hitting new records this year, suggesting that stablecoins — most of which, like Tether (USDT), Paxos (PAX) and USD Coin (USDC), operate on the Ethereum network — have greatly contributed to the network activity.
Ethereum 2.0 will address scalability issues
Ethereum developers aim to address the scalability problem in the upcoming Ethereum 2.0 upgrade, scheduled for sometime in July.
Specifically, the network will move on to a Proof-of-Stake, or PoS, consensus — meaning that asset holders, called stakers, will be responsible for network validation instead of miners. Curiously, last week, an anonymous user dropped an ETH 2.0 scaling solution on Medium.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.