Data from blockchain activities reveals that users on the Bitcoin network incurred almost identical fees as those on Ethereum in the latest quarter.
Bitcoin Transaction Fees Reach $440 Million in Q2
According to insights shared by market intelligence platform IntoTheBlock, Bitcoin experienced a notable surge in transaction fees during the last quarter. Transaction fees pertain to the funds that senders must include with their transactions as compensation to the validators.
The average fee on the network is reflective of the level of activity happening on it. When traffic is high, users are required to pay higher fees to ensure prompt transaction processing as the network has limited transaction capacity.
Competition among users for faster transaction processing can escalate fees. Conversely, during periods of low activity, fees tend to remain low as there is no urgency for high fee payments.
The infographic from IntoTheBlock contrasts the total fee amounts between Bitcoin and Ethereum in Q2.
In the past three months, the Bitcoin network collected approximately $440 million in transaction fees, marking a 61% increase from the previous quarter.
In contrast, Ethereum users experienced a 63% reduction in fees during this period, bringing the total fees on the network to $441 million, only slightly higher than those on Bitcoin.
The rise in Bitcoin fees can be attributed to the introduction of the Runes protocol in April. This protocol enables the creation of fungible tokens on the network, boosting transaction activity.
On the other hand, the decrease in Ethereum fees is linked to the adoption of Layer 2 solutions for transactions, enhancing transaction throughput on the network.
While Ethereum and Bitcoin continue to have substantial transaction fees, Litecoin remains the most cost-effective network according to IntoTheBlock.
Bitcoin Price Update
Bitcoin’s price has shown limited recovery post a recent plunge, hovering around $60,800.
