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Bitcoin transaction fees almost triple to double digits

Cryptocurrency

Bitcoin transaction fees saw a massive increase that saw the average rate reach double digits

According to data obtained from the crypto aggregator platform Glassnode, transaction fees constitute 22.25% of the Bitcoin miners’ income, while the rest (77.75%) is made up of the bloc’s rewards.

This current share of fee income, is so far the highest ever recorded since the previous historical record level, in late 2017 and early 2018. Fee income during this period rose to a share of almost 45%.

Glassnode shared this note on Twitter yesterday with a post saying: “The #Bitcoin miners’ revenue percentage from fees increased to 22.25% in the last hour (24h MA). It is the highest observed since January 2018.

While this jump in share of fee-represented mining revenue is significant on the Bitcoin platform, Bitcoin miners are still earning less, in terms of fees, compared to Ethereum miners. This means that Ethereum is still ahead and more profitable than Bitcoin in terms of fees collected.

Ethereum occupied the highest place (in relation to Bitcoin) in rates generated more than two months ago. This was the longest sequence ever posted by Ethereum. The record was attributed to the widespread adoption and use of stablecoins and the exponential growth of the decentralized financial sector, which is largely based on the Ethereum network.

Messari, a cryptocurrency analytics firm, points out that Ethereum overtook Bitcoin for the first time on June 6. Ethereum’s fee income continued to remain higher than Bitcoin’s for more than 4 months, through October 22, with a brief exception between late July and early August.

Last week, Bitcoin temporarily took the top spot, but was once again dethroned by Ethereum on October 25. Ethereum rates have remained higher since then. There are still several discussions around the proposal to reform the EIP-1559 fees that aims to reduce fees in the network. Miners still oppose the proposal, although most Ethereum users have welcomed it.

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