Aggregate Transaction Fees Of Ethereum Miners Surpasses Bitcoin Miners

Jyoti  |  Jun 9, 2020

Along with the demand for smart contracts and Ethereum transfers, the transaction fees on ETH  is also rising.

For the first time in months, on June 06, the aggregate amount of transaction fees earned by Ethereum miners was more than the Bitcoin miners.

In reference to the data, the analytics startup mention, “Daily Ethereum network fees surpassed Bitcoin fees yesterday. $498k vs. $308k. So far, this has only happened on 141 days (8%)”.

Reasons For Ethereum’s Increasing Transaction Fees

Currently, as the volatility hit the cryptocurrencies, the demand for Ethereum between the crypto exchanges rise and that is one of the reasons its transaction fees was increased.

Other than that, the increasing popularity of Ponzi schemes which are based on Ethereum and mass adoption of stablecoins by the crypto-traders are the few more reasons.

Analysts believe that increasing transaction fees would affect Ethereum in both a positive and negative manner.

It has been suggested that the increasing usage of Ehtereum network by the traders would positively affect the ETH price.

Drawbacks Of High Fees

Ryan Sean Adams, the founder of Mythos Capital, recently notified that since the past four years, the transaction fees paid by the Ethereum users is somewhere connected to the price of the ETH.

A chart shared by Adams indicates that if their relationship continues in the same manner then the ETH would be poised to surge dozens of percent.

It is to be noted that the high transaction fees also have some drawbacks.

A report suggests that if an individual connects with MakerDAO or Uniswap then its transaction fees may increase up to $1.00. And if certain operations are performed then the fees could immediately attain a few dollars, that too especially when the individual would want to process the transaction quickly.

This explains that the traders want to purchase smart contracts with a small amount of ETH then they would have to spend a large portion of their holdings on its fees only.

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