HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Both BTC and ETH Median Transaction Fees Have Exploded Since the Halving

Altcoins 2020/05/21 21:00 by Priyeshu Garg
The halving has caused the transaction fees on both the Bitcoin and the Ethereum network to increase significantly, with Bitcoin recording a growth of 800% in the past 3 months. However, median transaction fees on other major networks, such as Bitcoin Cash, Bitcoin SV, XRP, and Litecoin have remained relatively flat during the same period. BTC and ETH Transaction Fees Continue to Climb The block reward halving is one of the most monumental events in the Bitcoin ecosystem, with its consequences being debated for months before and after it happens. And while its effects on Bitcoin have been heavily discussed this month, focusing too closely on Bitcoin fails to provide a bigger picture—that the halving has affected Ethereum, too. According to the latest report from CoinMetrics, the transaction fees on both the Bitcoin and the Ethereum network have skyrocketed after the halving. This came as a surprise as most other metrics on the network, illustrated in the chart below, have remained relatively flat.  Table showing the 7-day average metrics for the top 5 cryptocurrencies. (Source: CoinMetrics) Bitcoin and Ethereum See Median Fee Increases of 800% and 250% On May 14th, two days after the halving, the median transaction fee on the Bitcoin network reached $2.88, the highest it has been since June 2019, CoinMetrics found. Data from Bitinfocharts showed that the average transaction fee on the same day reached as high as $5.1.  Ethereum also recorded the highest median translation fee since August 2018 on May 14, reaching $0.25. According to Bitinfocharts, the average transaction fee that day increased 30% in 24 hours and hit $0.55 at one point.  This was most likely a result of both networks having relatively full blocks, the report found, adding that other high-market cap cryptocurrencies such as Bitcoin Cash (BCH), Bitcoin SV (BSV), XRP, and Litecoin (LTC) did not record any meaningful increases in transaction fees.  With block rewards cut to half, the transaction fee was expected to soar as miners suddenly start earning half the revenue from block rewards. Currently, their revenue from fees is a very small percentage of that of block rewards. Ethereum’s fees increase can also be attributed to the increase in the activity of stablecoins, many of which are ERC20 tokens.   Graph showing the growth of median transaction fees for the top 6 cryptocurrencies in the past 90 days. (Source: CoinMetrics).      

0 Like(s)



You should also read...

Bitcoin 04/05/20 14:59 by Steve Muchoki
Bitcoin Setting 2017-Like Trends As Transaction Fees Soar
As the halving day gets even closer, Bitcoin transaction fees have jumped a whopping 400%, after hitting $2.30, a figure that has not been observed in the past ten months. In the past few days, BTC p...
Read More
Altcoins 13/05/20 14:29 by Brenda Ngari
Why Traders Shift From Ethereum And Bitcoin Networks In Droves To XRP
According to recent research conducted by Ripple, traders swap bitcoin (BTC) and ethereum (ETH) for XRP for their exchange balance transfers. Xpring’s data scientist Shae Wang noted that the recent...
Read More
Bitcoin 14/05/20 10:29 by Marco Tulio
Bitcoin Sees Solid Network Growth Amid Soaring Prices
The bitcoin network remains strong with gains in both activity and adoption, exceeding the expectations of many traders and analysts just 2 days after the halving, according to data obtained by the c...
Read More
Mining 18/05/20 08:05 by Samuel Wan
Bitcoin Arms Race Kicks Off As New Chinese Mining Pool Makes a Splash
The past week or so has seen talk of a new Bitcoin mining pool, based in China, making waves within the mining industry. Out of nowhere, in what is already a highly competitive market, Lubian has popp...
Read More
Bitcoin 20/05/20 04:00 by Priyeshu Garg
Post-Halving Reality: Average Bitcoin Transaction Fee Rises to $4
The transaction fees on the Bitcoin network have increased by more than 1,300% since the beginning of the year, with the halving pushing the amount necessary to perform a transaction all the way up to...
Read More