Ethereum Fees Rises a Whopping 230% This Month, Takes Over Bitcoin’s
The ever-rising fees of Ethereum network is a point of concern for quite some time now.
Moreover, for the first time in 6 months, Ethereum daily fees jumped above that of Bitcoin’s.
Fees, analysts argue is a better indicator of demand than transaction count or volume.
Bitcoin Fee vs Ethereum Fee chart
As we recently reported, crypto asset data provider Coin Metrics reported that Ethereum fee was on the verge of taking over Bitcoin fees.
On Sept. 21 while fees spend on transactions on Bitcoin has been around $235,792, Ethereum’s shot up to $250,485. And Tether was one of the main reasons for this increase in fee.
In July, the most popular stablecoin USDT migrated to Ethereum and accounted for more than 25% of all Ethereum transactions earlier this month.
As can be seen in the chart, this is not the first time that it happened. Earlier this year in February and then March, Ethereum fees spiked. But now with continuing demand for Tether, analysts predict it will happen more regularly.
In response, miners are now testing to raise the gas limit, meaning an increase of 25% in the network capacity. This limit on gas is set by mining pools.
As such, the Ethereum gas usage reached an all-time high just before the weekend, as per Etherscan data.
However, a gambling smart contract could be the reason behind higher demand for gas capacity which is taking 57% of all network capacity.
Meanwhile, Istanbul — a new Ethereum update — is poised to release in the coming months that will increase the capacity.
Ethereum price, on the other hand, is struggling to stay above $200, as per Coincodex.