Bitcoin has regenerate its position as the leader in daily cryptocurrency transaction fees, surpassing Ethereum for the first time in three years. According to the latest data, daily Bitcoin fees reached $11.63 million. For comparison, Ethereum recorded only $8.44 million during the same time period.
Taking the Ethereum crown
Three years ago, Ethereum surpassed Bitcoin in terms of transaction fees, a development attributed to its versatile blockchain platform, which enabled a wide range of decentralized applications (dApps).
This versatility attracted significant user activity, particularly in the burgeoning field of decentralized finance (DeFi) and non-fungible tokens (NFT), leading to higher transaction fees on the Ethereum network.
This period of dominance positioned Ethereum as a multi-faceted platform compared to Bitcoin, which primarily functions as a digital currency.
Game changer?
Recently, Bitcoin has seen a sharp increase in average transaction fees. Since the beginning of November, fees have increased significantly, and on November 16 the fee reached $18.69 per transaction. This increase represents an increase of almost 1000% compared to the rate recorded on November 1.
Some experts see this increase in transaction fees as a positive development. They argue that higher fees contribute to the sustainability of the Bitcoin network, especially in the context of declining block rewards for miners.
The recent increase in Bitcoin transaction fees comes at a critical time for Bitcoin minerswho have faced one of their least profitable years.
The next Bitcoin halving, scheduled for next spring, will further reduce the block subsidy from 6.25 BTC to 3.125 BTC. In this scenario, higher transaction fees could become a larger part of miners’ revenue, potentially accounting for 20% to 30% of the block reward.
This shift towards fee revenue is considered crucial to the long-term sustainability of the Bitcoin mining and transaction verification process.
It should be noted that Bitcoin Ordinals enrollments are now surpassing Ethereum in NFT sales.
