Ethereum Now Handling Fifty Times More Than Bitcoin in Network Fees – Trustnodes

That’s based on stats from blockchain tracking platforms that show ethereum has far more active blockchain users than bitcoin, the biggest crypto by marketcap.

Data from CryptoFees for example, a Gitcoin grant funded stats site by David Mihal, shows that the ethereum network generates fifty times more daily total transaction fees than the bitcoin network.

The blockchain fee tracking platform shows that the Ethereum network generated $20.3 million in daily fees on Friday, while Bitcoin collected $422,965.

That’s a huge disparity with CryptoFees stating its data comes from CoinMetrics and Graph Protocol subgraphs. For bitcoin, we can even verify it ourself as bitcoin had 270,572 transactions in the past 24 hours, times 0.000038 BTC ($1.54) per transaction, amounts to about $400,000.

This represents 2.5% of the fees that the ethereum network attracted in an indication that there is far more demand for ethereum than bitcoin.

In fact, ethereum is the most used blockchain, and by far, out of all cryptos. At a distant second, Uniswap made $5.4 million in fees, Binance Smart Chain just $1.55 million, while the fourth biggest blockchain in terms of fees, Avalanche, came at $859,466.

Other networks generating more daily fees than Bitcoin are SushiSwap and Trader Joe at $723,916 and $539,054 respectively.

Why Ethereum Has High Demand

Bitcoin is the most valuable crypto in terms of market capitalization, but in terms of blockchain utility, other cryptos are attracting more users due to having more use cases.

Ethereum for example hosts a lot of decentralized applications in defi and other projects, including blockchain based metaverses as well as NFTs.

Ethereum second layers moreover are handling close to $150,000 in fees a day, or about a third of bitcoin’s levels.

Arbitrum, as can be seen above, is collecting $67,000 while Optimism is at $35,000 a day.

With Polygon at $42,000 in addition, just these three second layers are handling in combination about the same transaction volumes as bitcoin was in 2016.

L2 Fees

Despite ethereum being the biggest network by far in terms of total fees collected, it still just costs $2 for a transaction. It’s just that there’s so many of them at more than one million transactions a day as shown in the featured image.

Second layers running on eth have even lower fees, but many transaction at low fees still amounts to a lot in total fees, enough to make ethereum miners, and soon enough stakers, very happy.

The second layers in addition increase capacity by condensing transactions to one on-chain action, and that’s now closing in to about 10% of total network usage.

A fairly substantial number, especially as some second layers are still to launch, which can keep ethereum at that top spot perhaps for long to come.