Bitcoin once again collects more fees than Ethereum, transactions costing more than R$100

To the Bitcoin fees has soared this week and users are paying more than R$100 so that your transactions are confirmed in the next block. The reason may be related BRC-20 tokens on the Bitcoin network, leading to a massive queue of unconfirmed transactions.

On the other hand, the rates of Ethereum remain relatively low compared to their history. As I write this, it is necessary only R$7.50 to confirm a transaction. The moment also illustrates a potential crisis in Ethereum, which failed to benefit from the momentum of third-party projects during this year’s bull run.

As a result of this change in trend between the two largest cryptocurrencies on the market, fees collected by Bitcoin surpassed those of Ethereum for the first time since 2020.

Bitcoin collects US$11.6 million in daily fees this Friday (17), Ethereum has US$8.4 million, but still dominates the past 7-day average.  Source: Cryptofees.
Bitcoin collects US$11.6 million in daily fees this Friday (17), Ethereum has US$8.4 million, but still dominates the past 7-day average. Source: Cryptofees.

The Bitcoin network is becoming clogged and costs are skyrocketing

About 240,000 transactions waiting for confirmation on the Bitcoin network. Without adding new transactions, you will need to do this 291 blocks before this queue needs to be cleared. In other words, just over two days.

Besides the strong interest in Bitcoin itself, which has already doubled in value by 2023 and could rise even further with the arrival of ETFs in the US, another reason for this congestion is the BRC-20 tokens.

For example, Binance listed Ordinals (ORDI) on its platform last week, but the OKX market is also hot. According to the broker, the volume broke records this Thursday (16).

“Yesterday, our Ordinals trading volume surpassed $23 million, setting a new record!”

This explains why Bitcoin’s mempool has reached its highest level. Of 384 virtual megabytes (vMB) collectedthe value exceeds the 329 vMB recorded in January 2018, when segwit was not yet used by all wallets on the market.

Bitcoin mempool reaches highest level in history.  Source: Jochen Hoenicke.
Bitcoin mempool reaches highest level in history. Source: Jochen Hoenicke.

Despite the above-normal transaction flow, the Bitcoin works at a small low point 0.3% this Friday (17), trading at US$36,400. One reason could be the exhaustion of bulls, who could not keep up with the rise in US stocks and gold after the release of US inflation data this week.

Ethereum fees remain low, competitors closing in

While Bitcoin is down 2.1% over the past 7 days, the… Ethereum works when there is a decrease of 7.2% over the same period, with returns under $2,000. The low rates demonstrate the lack of interest in the network, which, unlike in other years, was not driven by third-party projects such as NFTs, play-to-earn games and memecoins.

Ethereum fees since the Merge update.  Source: UltraSoundMoney.
Ethereum fees since the Merge update. Source: UltraSoundMoney.

While R$7.50 in fees is an expensive amount, especially compared to other smart blockchains, it is worth noting that Ethereum has often had fees above R$100 in its history.

One of Ethereum’s biggest competitors, Solana (SOL), has gained 473% this year. Although the market value of the two is still very different, Vitalik Buterin’s currency dominance may be tested.

Finally, using Bitcoin is the best alternative to escape the high costs of Bitcoin without having to run to another cryptocurrency Lightning network. Currently, several major brokers already offer this option for deposits and withdrawals.

Source: Live Coins

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