We can’t believe it! For the first time Ethereum managed to outperform Bitcoin but by what? Well, it turns out that in the total of fees paid during 2020.
Ethereum’s high fees are a given
Yesterday CoinMetrics published on its Twitter a graph that put the crypto Twitter of the gigantic increase in transaction fees in Ethereum in context.
Specifically, CoinMetrics compared the total paid for transaction fees on Ethereum vs. Bitcoin So, so far this year, more than $ 350 million in ETH fees have been paid, which is double what was paid in Bitcoin.
If we look closely at the graph, we can see that it was on August 12 when the 2020 cumulative fees in Ethereum matched those of Bitcoin, continuing with an almost exponential rise since then.
That’s right, Ethereum managed to outperform Bitcoin but that’s not necessarily a positive thing.
Now, perhaps there is a question as to why this is so relevant. Well, previously the total fees accumulated in a year in Ethereum was much lower if we compared it with Bitcoin.
In fact, one of the advantages at the time of Ethereum was its low fees and a higher transaction speed compared to Bitcoin.
This was also noted by CoinMetrics by writing on Twitter that last year the cumulative fees on Bitcoin were $ 135 million while on Ethereum they were just $ 27 million.
It all started when, starting in June, Ethereum started posting higher daily fee income. However, it was between August and September that it broke records and little by little it has been losing usability.
As we have previously noted in CryptoTrend, the significant pressures on Ethereum began with the takeoff of DeFi and its subsequent boom.
Certainly Tether (USDT) also compromises an important part of the use of the Ethereum Blockchain, however, the impact of DeFi has been significant.
This has brought the Blockchain to a point where it has lost its usability for many crypto investors. In fact, experts wonder how long it can continue to hold the pressure and if DeFi protocols will have to resort to other solutions.
At the moment there is no plan outlined regarding how to solve the situation in Ethereum. The situation is likely to calm down as the DeFi euphoria stabilizes, but is that soon to happen?