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Bitcoin fees go up 198%, but Ethereum is even more profitable

October 28, 2020

Bitcoin (BTC) transaction fees nearly tripled in three days, from an average of $ 3.52 to $ 10.20.

According to cryptocurrency market data aggregator Glassnode 22.25% of Bitcoin miners’ income is currently made up of fees, with the other 77.75% coming from block rewards. The share of fee income is currently the highest since the plateau of the last historic high in January 2018This followed a rise in fee income to nearly 45% in the previous month.

The most recent surge is due to an increase in Bitcoin’s average daily rates over the past few days, which was only expressed in double digits except for the period between November 2017 and January 2018.

Bitcoin fees go up 198%, but Ethereum is even more profitable
Bitcoin fees go up 198%, but Ethereum is even more profitable

Despite mining revenue’s share of mining revenue, which tripled in the last month for Bitcoin miners, Ethereum (ETH) miners are still earning more fees. Due to the use of stablecoins and the decentralized financial sector (DeFi) built on top of the Ethereum network, Ethereum fees recently exceeded those generated by Bitcoin for the longest series in history.

24 hour fees for Ethereum and Bitcoin: Messari

After outperforming Bitcoin for the first time on June 6, Ethereum’s fee income exceeded Bitcoin through October 22, with two temporary exceptions in late July and early August.

While Bitcoin temporarily regained its fee dominance last week, Ethereum fees have been higher again since October 25th. At the end of this issue, Ethereum’s fees were $ 1.74 million for the past 24 hours, compared to $ 1.54 million for Bitcoin, Messari said.

Vitalik Buterin’s Ethereum Enhancement Proposal (EIP) -1559 has seen a surge in discussion recently as a potential way to lower fees. Despite polls suggesting the community supports the proposal, miners appear to be vehemently against it because of the expected impact of the upgrade on their income.