In the dynamic world of cryptocurrencies, where the dominance of one technology over another often changes from day to day, Bitcoin has regained the upper hand over its biggest rival, Ethereum. For the first time in three years, transaction fees on the Bitcoin network have exceeded those generated by Ethereum, reaching a value of $11.63 million per day compared to Ethereum’s $8.44 million. This unexpected turn of events sheds new light on current trends and the future of both cryptocurrencies.
In recent years, Ethereum seemed to be the undisputed leader in the world of cryptocurrencies, especially in terms of transaction fees. Its versatile blockchain platform attracted users, offering them the possibility to use decentralized applications (dApps) and non-fungible tokens (NFTs). It was these innovations that contributed to the rise in transaction fees on Ethereum.
However, recent events have shown that Bitcoin is far from stepping back from the scene. Since the beginning of November, we have witnessed a sharp increase in average transaction fees on the Bitcoin network. On November 16, the fee for a single transaction reached $18.69, representing almost a 1000% increase compared to the fees at the beginning of the month.
This significant increase in transaction fees on the Bitcoin network is crucial for cryptocurrency miners. The last year has not been easy for them in terms of profits, and the upcoming halving, scheduled for next spring, will further reduce the block reward from 6.25 BTC to 3.125 BTC. In this context, higher transaction fees may become a significant source of income for miners, potentially accounting for 20-30% of the block reward.
This shift towards income from transaction fees is considered crucial for the long-term sustainable future of the mining and transaction verification process in the Bitcoin network. Moreover, it should be noted that Bitcoin Ordinals inscriptions currently outpace Ethereum in NFT sales.
Recent changes in the world of cryptocurrencies highlight its unpredictability and dynamic nature. Bitcoin, often perceived as primarily a digital currency, once again proves its ability to adapt and survive in a changing environment. Does this herald a new era in the rivalry between Bitcoin and Ethereum?
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