Ethereum Is Overtaking Bitcoin In Daily Transaction Fees; Is USDt's Omni to ERC20 Switch The Cause?

    With Tether in the driver's seat.

    • ETH fees & miner revenue shot up
    • Transaction fees a strong signal of overall network health and long-term sustainability
    • USDT-ETH transactions account for 25% of all Ethereum transactions

    Ethereum is inches away from overtaking BTC in daily transaction fees — in comparison to BTC’s $185,993 on Sept. 15, ETH had $182,899 daily transaction fees.

    However, it won’t be the first time.

    Transaction fees represent real network demand and usage but some argue high fees could be detrimental to a crypto network.

    However, in the long term, as block reward decreases, fees would become a large percentage of total miner revenue so as Coin Metrics states in its latest issue, “Total fees therefore are a strong signal of overall network health and long-term sustainability.”

    Over the past thirty days, while BTC’s fees have come crashing down, ETH’s have shot up.

    The biggest reason is Tether’s migration from Bitcoin-based Omni protocol to Ethereum.

    USDT on Omni has been growing for most of 2019, hitting new all-time highs around April 2019, peaking at 91,513 on August 7th, but since then USD-ETH has skyrocketed.

    Ethereum-based Tether hit a new ATH of 187,912 daily transactions on Sept. 9. USDT-ETH transactions have risen so much so that they accounted for 25% of all Ethereum transactions on Sept. 8th.

    Eth has also started to climb ahead of BTC over the last 30 days as a percentage of total miner revenue (fees plus block rewards).

    A similar pattern could be seen in total daily gas that reached an ATH, likely driven by USDT-ETHs recent surge as Tether is the biggest gas spender out of all Ethereum contracts over the last 30 days.

    “Gas usage on Ethereum hit ATH,” stated Glassnode, on-chain data platform. “Tether has been on the rise, with a recent peak of 20% of all network fees used to transfer USDT. While less gas is used to move ETH, the bulk is consumed by non-standard contracts, that require heavier computations.”

    Last month, when Ether’s network utilization surged to 90% level, Vitalik Buterin, Ethereum co-founder said as utilization increases, transaction costs would follow suit that would mean corporate and institutional users might hesitate to use the network.

    In the longer term, Ethereum 2.0’s sharding will fix these issues, he said while in the short term, he proposes increasing the gas limit, that will effectively increase the blocksize.

    As we reported, 50 percent of the miners are in support of this and with Istanbul software upgrade — postponed from its initial early October release date — coming up as well, Ethereum might resolve this issue for now.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Microsoft Files Patent To Mine Cryptocurrencies With Verified Body Activity Data

    Giant software manufacturer, Microsoft is seeking to capitalize on the new crypto hype. The firm is seeking to introduce its own cryptocurrency that will...

    Coinbase Commerce Crosses $200,000,000 In Crypto Payments Since Launch

    Covid-19 hasn't kept consumers from using bitcoin (BTC) as a means of payments for goods and services according to a merchant transaction report from...

    Singapore Exempts Binance, Coinbase, Gemini, and Ripple From its Current PSA Crypto Act

    Singapore is counted among one of the crypto hubs of the world as it offers ease of business for these crypto service providers when...

    The World Has Gone Full Crypto in 2020; Volatility is Up, Stocks Are trading like A Sh*tcoins

    The global markets are on a rollercoaster for the past few weeks, one day they are recording historical one-day gains the next they are...

    South Korea May Get A New Crypto Custodian After Largest Bank Files Trademark App

    KB Kookmin Bank, the largest bank in South Korea, is preparing to launch its cryptocurrency custody service as soon as possible. As per the local...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.