While a number of digital currencies have seen price increases, the two leading crypto assets, bitcoin and ethereum, have skyrocketed transaction fees. For example, data shows that the median fee for a bitcoin transaction is $ 8.58, while the median fee is $ 9.35 when spending ether. Meanwhile, the average transaction costs for both networks were much higher at between $ 14 and more than $ 20 per wire transfer.
Over the course of 2021, crypto assets have skyrocketed in value, but in addition, the costs for transactions on these networks have also increased. Bitcoin (BTC) and Ethereum (ETH) are the two largest blockchains, in terms of market capitalization. The two networks are also taking the cake when it comes to expensive transactions and this is a complaint on social media and crypto-focused forums.
At the time of writing, according to data from bitinfocharts.com, the average transaction fees for bitcoin were (BTC) is 0.00038 BTC or $ 14.25 USD by bank transfer. Of course, the average size transaction is lower on the BTC network, but still $ 8.58 per transaction according to current messari.io data. Statistics show that the average transaction costs on the ETH network today is 0.013 ETH or $ 20.68 USD at the moment of writing. Messari statistics show the average fees for ETH is also higher than BTC, but lower than the average ETH transaction, for $ 9.35 by bank transfer.
Of course people complain about the fees and backlog of transactions. Always remember people, one person tweeted. ‘The sky-high transaction costs of ethereum [and] bitcoin is there so someone wants to make a profit, not because they are needed. Financial reporter, Kyle Torpey tweeted about the fact that it costs more to send wrapped bitcoin (WBTC) with Ethereum than to send bitcoin onchain.
Especially other fans of digital currency ETH supporters believe the problem with the high fees will be resolved. “At first glance it seems a lot overloaded, but 2.0 will increase enormously ETH‘s speed, scalability and value, ”an individual claimed on Twitter. “Those outrageous fees will be a thing of the past.”
Bitcoin Cash proponents also discussed the massive fees on both the Ethereum and Bitcoin networks over the course of the past week. The cost of getting a transfer to the next block using the BCH network costs $ 0.0021 according to bitcoinfees.cash statistics. The current average fee on the Bitcoin Cash (BCH) blockchain on February 4, 2021, is $ 0.0009. Bitcoin.com founder Roger Ver recently popped up with the nomadcapitalist.com founder, Andrew Henderson, and discussed the issue with BTC transaction costs.
“Just try to make a bitcoin transaction and then try to make a bitcoin cash transaction” Ver explained in the video. “The difference is astounding and may be the only evidence you need to know where you stand in the Bitcoin vs. Bitcoin Cash debate,” added the entrepreneur.
The high cost has seemingly also pushed stablecoins using these networks to alternative blockchains. For example, when onchain fees became too taxing, the most popular stablecoin chain (USDT) started migrating from BTC (Omni Layer) to the Ethereum chain. Since the ETH network costs have risen sharply in recent months USDT have settlements seen more action on the Tron blockchain. Additionally, the second most popular stablecoin USDC is migrating to the Stellar network and fees may have spurred this decision as well.
What do you think about the problematic issues with Bitcoin and the Ethereum network transaction fees? Let us know what you think about this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Messari.io,
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