Over the last four days, Bitcoins transaction fees have surpassed Ethereums based on information provided by Cryptofees, an analytical tool for cryptocurrencies.
The increase in Bitcoin transaction fees lately can be linked to the mounting excitement for the approaching halving event and the anticipated Runes update.
Bitcoin Fees Surpasses Ethereum for 4 Consecutive Days
On April 18, Bitcoin processing fees amounted to $6.81 million, which was more than Ethereum’s fees of $5.04 million. However, it is important to note that Bitcoin miners earned a higher revenue from fees, raking in $7.47 million compared to Ethereum stakers who made $7.31 million the previous day.
On April 15 and 16, Bitcoin miners earned approximately $9.98 million and $5.91 million respectively. This surpassed the earnings of Ethereum miners by around $3.5 million on the former day and an additional $1.1 million on the latter.
Instead, Ethereum has a slightly higher average fee volume over the past week, totaling approximately $8.02 million, while Bitcoin records around $7.45 million.
The Bitcoin fee hike occurs just before the anticipated halving on April 20th, when mining rewards decrease from 6.25 BTC to 3.125 BTC. Currently, approximately 900 BTC are mined daily, equating to around $57.2 million based on current prices.
After the halving event, around 450 Bitcoins will be mined each day. In the initial stage, since the mining rewards have been cut in half, miners may need to depend more on higher transaction fees and Bitcoin’s price growth to make up for their decreased revenue.
Runes Are a Catalyst for Rising Bitcoin Fees
Starting in January 2023, the adoption of NFT-like Ordinal Inscriptions led to higher transaction fee income for Bitcoin miners. Furthermore, a potential new source of revenue is expected with the debut of Runes, a fresh Bitcoin token standard slated for launch during the halving at block 840,000.
Runes aim to challenge Ordinals by making it easier for users to create interchangeable tokens on Bitcoin, primarily attracting fans of meme coins and community-focused groups. According to its creator Casey Rodarmor, this project exclusively relies on the existing Unspent Transaction Outputs (UTXOs) in the Bitcoin system, minimizing potential network congestion compared to Ordinals.
The rise in Bitcoin transaction fees lately could be partially explained by a drop in prices for BRC-20 tokens like ORDI and SATS, which have fallen by 38% and 43% respectively over the past week, causing traders to focus more on Runes instead. (Source: Weekly market data from CoinGecko)
Currently, Runestones is the busiest Bitcoin NFT collection in terms of trading volume, with a total of $9.6 million transacted in the last 24 hours. On the other hand, Ethereum’s popular collections like Pudgy Penguins and Bored Ape Yacht Club saw volumes of $3.7 million and $3.4 million during the same period.
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2024-04-19 16:24