Generated Ethereum network fees eclipse its rivals
The Ethereum network is way ahead its blockchain peers in terms of fees generated. This calculation reflects the continued use.
On April 10, blockchain computing firm Token Terminal reported on the top network fee generators of the past six months.
It came as no surprise that Ethereum was way ahead of the rest, generating more than double the fees of its next highest competitor.
Over the past half year, Ethereum has generated a whopping $743 million in cumulative daily fees. According to Token Terminal, Ethereum’s closest rival, TRON, generated less than half of this at $282 million.
Furthermore, Ethereum generated almost ten times more fees than the Bitcoin network, which had just under $80 million for the period.
Current Ethereum Fees Low (But High)
Token Terminal tired that it’s important to look at fees because it’s a metric that “tells us what protocols are actually being used.”
Protocol usage and adoption are signs of continued growth for the ecosystem, and Ethereum is clearly the industry leader.
Uniswap was the third largest crypto network in terms of generated fees, with $269 million in the last six months.
According to Crypto Fees, Ethereum has generated around $6 million per day in fees on average over the past week. Rival platform Solana, which has been called an ‘Ethereum killer’, has generated just $36,700 in average daily fees.
Also, BitInfoCharts reports relatively low average transaction fees for Ethereum at around $4.70. However, for the average non-whale user, this is quite expensive compared to alternative networks. Despite its high fees, Ethereum remains dominant in this metric.
Layer 2 networks have emerged as a solution to this conundrum. The most popular L2, Arbitrum One, is the sixth highest network in terms of fees generated. According to Crypto Fees, it has generated a daily average of $236,000 in fees over the past week.
In addition, L2fees reports that it costs only $0.06 to make an Ethereum transaction on the Aribtrum network and $0.17 for a token swap.
However, it can take a week to get Ethereum out of the network due to the optimistic rollup technology. Therefore, it is far from a perfect solution.
ETH Price Outlook
Ethereum prices have remained flat over the past 24 hours. As a result, the asset was trading for $1,859 at the time of writing.
ETH remains in the shadow of Bitcoin, which has been consolidating over the past three weeks or so. More volatility could be imminent this week with the Shanghai (Shapella) hard fork on April 12.
Disclaimer
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