The total fees paid in 2020 at Ethereum are more than double the fees paid at Bitcoin. When did Ethereum overtake Bitcoin?
We can’t believe it! For the first time Ethereum managed to beat Bitcoin, but by what? Well, it turns out that in total fees paid during 2020.
Ethereum’s high rates are a fact
Yesterday CoinMetrics published on their Twitter a graph that put into context the Twitter crypto of the giant increase in transaction fees at Ethereum.
Specifically, CoinMetrics compared the total transaction fees paid at Ethereum vs. So far this year, more than $350 million in ETH fees have been paid, which is twice as much as Bitcoin.
If we look in detail at the graph, we can see that it was on August 12 that the cumulative 2020 rates at Ethereum equalled those at Bitcoin, continuing an almost exponential rise since then.
Yes, Ethereum managed to outperform Crypto Cash review but that’s not necessarily a good thing.
Now, perhaps there’s a question as to why this is so relevant. The fact is that previously the total accumulated rates in a year at Ethereum were much lower compared to Bitcoin.
In fact, one of the advantages of Ethereum at the time was its low fees and faster transaction speed compared to Bitcoin.
This was also noted by CoinMetrics when they wrote on Twitter that, last year, the cumulative rates at Bitcoin were $135 million while at Ethereum they were only $27 million.
It all started when, as of June, Ethereum began to record higher daily fee revenues. However, it was between August and September that it broke records and has gradually lost usability.
Problems that persist
As we pointed out in Crypt Trend above, the significant pressures on Ethereum began with the take-off of DeFi and its subsequent boom.
Certainly Tether (USDT) also compromised a significant portion of Ethereum’s Blockchain usage, however the impact of DeFi has been significant.
This has led the Blockchain to a point where it has lost its usability for many crypto investors. In fact, experts question how long it will be able to keep up with the pressure and whether DeFi protocols will have to resort to other solutions.
At the moment there is no plan drawn up as to how to solve the situation at Ethereum. It is likely that the situation will calm down as the euphoria in DeFi stabilises, but will that happen soon?