Fun

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

News Feed - 2020-09-30 04:09:03

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 reportthat 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.




On Twitter, the Coin Metric’s team published a chartthat 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.Cambridge University"s Third Crypto Study Records 101 Million Cryptocurrency Users WorldwideFEATURED | 5 days agoBrazen Nigerian Crypto Scam Inksnation Still Operational Three Months After Regulator WarningFEATURED | Sep 20, 2020Tags in this storyBitcoin Fees, BTC, BTC fees, Coin Metrics, data, DeFi, DEX, ETH fees, Ethereum fees, Fee Market, Hashrate, Hashrate Climbing, Miners, Nate Maddrey, Network Fees, Onchain data, SUSHI, Transaction Fees, uniswap


Image Credits: Shutterstock, Pixabay, Wiki Commons, Coin Metrics,Use Bitcoin and Bitcoin Cash to play online casino games here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

News Feed

Enforcement of South Korean virtual assets law prescribed in decree
Derek Andersen5 hours agoEnforcement of South Korean virtual assets law prescribed in decreeThe details of enforcing the Protection of Virtual Asset Users Act are not contained in the bill, which comes into force July 19
Vitalik Buterin Asks Twitter Followers Which Crypto They Prefer to Overtake Ethereum — Cardano, Tron Favorites
Vitalik Buterin Asks Twitter Followers Which Crypto They Prefer to Overtake Ethereum — Cardano, Tron Favorites Ethereum co-founder Vitalik Buterin set up a pair of polls on Twitt
Biden’s $2 Trillion Relief Package the Largest Stimulus Payments to-Date, Plan Showers Money on the Bureaucracy
Biden"s $2 Trillion Relief Package the Largest Stimulus Payments to-Date, Plan Showers Money on the Bureaucracy On Saturday, politicians in the U.S. approved the
Coinbase Secures Regulatory Approval to Operate as a Virtual Asset Service Provider in Ireland
Coinbase Secures Regulatory Approval to Operate as a Virtual Asset Service Provider in Ireland Coinbase has announced it has secured regulatory approval as a virtual asset service
Solana Formally Acknowledges Problems With ‘High Compute’ Transactions Clogging the Network
Solana Formally Acknowledges Problems With "High Compute" Transactions Clogging the Network Solana, a top ten smart contracts-enabled cryptocurrency by market cap, has acknowledged
Value Locked in Defi Drops Below $200 Billion, April’s Dex Trade Volume Drops 21% Lower Than March
Value Locked in Defi Drops Below $200 Billion, April"s Dex Trade Volume Drops 21% Lower Than March While the crypto economy shed billions this week, the total value locked (TVL) in
David Attlee48 minutes agoOman launches $350M crypto mining center: ReportThe mining facility comes as part of a plan to accelerate the digitalization of Oman’s economy, which is mainly dependent on oil exports.385 Tot
Ripple CEO Discusses Potential Outcomes of SEC Lawsuit Over XRP
Ripple CEO Discusses Potential Outcomes of SEC Lawsuit Over XRP Ripple’s chief executive has shared his views on possible outcomes of the lawsuit brought by the U.S. Securit
Blossom Capital’s Newly Launched $432 Million Fund to Focus on Crypto Startups
Blossom Capital"s Newly Launched $432 Million Fund to Focus on Crypto Startups Blossom Capital, the London-based venture capital firm founded by Candice Lo, Imran Ghory, Mike Hudac
In-Between Bitcoin Halvings: Analyst Proves Bitcoin’s Price Not Bound to 4-Year Cycles
In-Between Bitcoin Halvings: Analyst Proves Bitcoin"s Price Not Bound to 4-Year Cycles Crypto traders and analysts have always looked to the halvings for some kind of clues in or
SHIB Community Members and Countdown Clock Hint Shibarium Launch Is Imminent
SHIB Community Members and Countdown Clock Hint Shibarium Launch Is Imminent According to a myriad of social media posts, the meme crypto project Shiba Inu is planning to launch th
Binance reaches 200M users with $100B in assets under custody
Tristan GreeneJun 08, 2024Binance reaches 200M users with $100B in assets under custodyThe 200 million user mark represents over a third of all cryptocurrency holders worldwide.4809 Total views27 Total sharesListen to ar