As follows from data obtained by Glassnode, the daily fees for using the Ethereum network exceeded those in the Bitcoin (BTC) network for two consecutive days on June 6 and 7.
According to Glassnode, on June 6, the total Ethereum fees were $ 498,000. Fees in the Bitcoin network on the same day were $ 308,000. The next day, the gap increased, and transaction fees totaled $ 540,000 in the Ethereum network and $ 258,000 in the Bitcoin network.
The Ethereum network is currently clogged
This is the second time this year when the total fees of Etereum network are higher than commissions in the Bitcoin network. On March 12, there was a sudden increase in fees on the Ethereum network, which at that time amounted to almost $ 800,000, significantly exceeding the amount of commissions that were generated on the same day in the Bitcoin network. Ethereum network she was experiencing then heavy overload, which forced users to pay higher fees for their transactions. The reasons are similar this time.
First of all, Bitcoin mempool has recently been cleared as a result of a recent difficulty correction that took place on Thursday. The lack of pending transactions significantly reduced online transaction fees, which fell to an average of $ 1 on average. For comparison, on May 20, a bitcoin transaction could cost up to $ 6.6. This was caused, among others, by the last halving, which led to a reduction in the miners’ prize for mining the block by half.
Mempool Ethereum is currently clogged. Currently, over 103,000 transactions are underway, which partly explains the recent increase in transaction fees. What’s more, the value of stablecoin transfers broke new records this year. This suggests that stablecoins – most of which, e.g. Tether (USDT), Paxos (PAX) and USD Coin (USDC), operate on the Ethereum network – have significantly contributed to network activity.
Ethereum 2.0 will solve scalability problems
The goal of the creators of Ethereum is to solve the scalability problem in the upcoming Ethereum 2.0 update, which is scheduled for July.
More specifically, the network will switch to the Proof-of-Stake algorithm – this means that the validation of the network instead of miners will be the responsibility of asset owners, known as stake holders.
If you want to learn more about transactions in the Bitcoin network, be sure to read our last article: How do transactions in the Bitcoin network work? Bitcoin for beginners