Multiple factors drive ETH transaction fees soaring, Ethereum miners earn more than Bitcoin miners
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc), by NICK CHONG, translated by Libert, published with permission.
Babbitt Information (ID: bitcoin8btc)
Babbitt Information (ID: bitcoin8btc)
According to a Bitcoinist report on June 8, Ethereum transaction fees continued to soar as user demand for smart contracts and ETH transfers surged.
image description
Source: pixabay
On June 6, the total amount of transaction fees earned by ethereum miners exceeded that earned by bitcoin miners for the first time in months. Blockchain data analytics startup Glassnode published this observation on June 7, sharing the chart below.
image description
“Ethereum daily network fees surpassed Bitcoin daily network fees on June 6. $498,000 vs. $308,000 respectively. So far this has only happened 141 days (8%). "
Citing the data below, Glassnode writes:
The reasons for the high transaction fees on Ethereum are the following: 1) As cryptocurrencies intensify volatility, the need to send ETH between exchanges increases; 2) Ethereum-based Ponzi schemes are popular again; 3) Stablecoins continue to be encrypted Massive adoption by currency traders.
Analysts said that this rapid increase in transaction fees will have a great impact on Ethereum, both positive and negative.
Analysts are bullish on ETH
Analysts say that the increasing usage of the Ethereum network is a positive factor driving the price of ETH.
Ryan Sean Adams, founder of Mythos Capital, recently pointed out that his analysis found that the price of ETH is closely related to the transaction fees paid by Ethereum users over the past four years.
Adams’ chart shows that if this relationship holds, ETH is poised to rise by tens of percent.
secondary title
Scaling solutions coming soon
Although on the surface, users are optimistic about the price of Ethereum and ETH, the high fees do have a very big disadvantage.
According to Bitcoinist research, if a user wants to interact with decentralized financial contracts like MakerDAO and Uniswap, a transaction can cost as much as $1. In some operations, especially if you want to process the transaction quickly, the transaction fee can be as high as several dollars.
