The amount of money generated in network fees is often considered an important indication of network usage – and Bitcoin seems to be lagging behind other blockchains.
Network rates can be used as a measure of usage and demand on a system, and Bitcoin is dropping in the graphs for this metric.
As noted on Monday (16) by developer ‘banteg’ from Yearn Finance, BTC has dropped to seventh place in terms of daily fees generated by network usage. the programmer tweeted a screenshot of CryptoFees showing the list of blockchains and networks from the previous day, stating:
“Orange Coin [BTC] in disbelief, as it lags behind 56x in terms of actual use”,
Ethereum way ahead
Bitcoin ranked sixth in terms of daily rates on Sunday (15), with $515,789 generated according to CryptoFees. In the lead was Ethereum (ETH), with US$ 19.85 million generated in fees in the period. BTC fees were only 2.5% of the amount ETH generated that day.
DeFi Uniswap (UNI) exchange was second with $2.49 million in daily fees, Binance Smart Chain third, generating $2.18 million. Also above Bitcoin were the Aave flash lending platform (AAVE) and the decentralized exchange SushiSwap (SUSHI), with $1.4 million and $836,000, respectively.
Even the DeFi Compound loan protocol surpassed Bitcoin in terms of daily fees generated. When asked if the fees were a good measure of the network’s success, the developer responded:
“People willing to pay absurd fees seems like the best free market comparison. It means they find immense value in Ethereum. ”
Other Ethereum metrics also surpassed Bitcoin, such as value chain settlement, active addresses and daily transactions. According to BitInfoCharts, Ethereum processed 1.25 million transactions on Monday, while Bitcoin processed almost 80% less, with 263,000.
Network rates soar 160% as of August 21
All these extra fees generated by the Ethereum and Ethereum-based protocols are of little benefit to the average user who has to bear the increased cost of using the network.
Average network fee prices have risen more than 160% this month, from about $8 in early August to $21 on August 16th.
The Etherscan Fee Tracker is currently reporting an average fee of $25 for performing a simple token exchange at Uniswap and about $9 for a simple ERC-20 token transfer.
Recent NFT launches and creation incentives have raised fee prices as OpenSea’s NFT market has become the network’s biggest consumer of fees.
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