For the first time in three years, Bitcoin has surpassed Ethereum in daily transaction fees. According to the latest data, Bitcoin’s daily fees reached $11.63 million, compared to just $8.44 million for Ethereum.
Bitcoin dethrones Ethereum and takes back its crown
For a long time, Ethereum had taken first place from Bitcoin in transaction fees. This rise was attributed to the versatility of the Ethereum blockchain, which enables the development of a wide range of Decentralized Applications (dApps) in sectors of decentralized finance (DeFi) and NFT non-fungible tokens.
This versatility has attracted a lot of users and activity to the network, generating high transaction fees. Ethereum has thus established itself as a multi-use platform compared to Bitcoin, confined to the role of crypto.
Recently, Bitcoin transaction fees have risen sharply. Since the beginning of November, they have increased almost tenfold, reaching $18.69 per transaction on November 16.
Some experts see this increase in a positive light. They believe that higher fees strengthen the sustainability of the Bitcoin network, particularly in the face of the upcoming reduction in rewards for miners.
The issue of miner profitability
This question of the profitability of miners is crucial. 2023 will see the halving of rewards from 6.25 BTC to 3.125 BTC per block. In this context, the increase in transaction fees could become a significant part of mining revenues.
It is estimated that the fees could represent 20-30% of miners’ total earnings. This move towards a more commission-based model is seen as essential to ensuring the long-term viability of the Bitcoin mining and transaction validation infrastructure.
Additionally, NFTs on Bitcoin are also seeing notable growth. Sales of Ordinals NFTs have now surpassed those of Ethereum. So many positive signals which prove the ability of the Bitcoin network to remain innovative and competitive.
Its resilience commands respect and proves that Bitcoin is determined to retain its crown in the long term in the crypto universe.
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