The total fees paid in 2020 in Ethereum is more than double the amount paid in Bitcoin. When did Ethereum surpass Bitcoin?
We can’t believe it! For the first time Ethereum surpassed Bitcoin, but by what? Well, it turns out that in the total of fees paid during 2020.
The high rates of Ethereum are a fact
Yesterday CoinMetrics published on its Twitter a graph that put into context the crypto Twitter of the giant increase in transaction fees at Ethereum.
Specifically, CoinMetrics compared the total transaction fees paid at Ethereum vs. So far this year, more than $350 million in ETH fees have been paid, which is twice as much as Bitcoin.
If we look at the graph in detail, we can notice that it was on August 12 when the accumulated fees of 2020 in Ethereum were equalized with those of Bitcoin, continuing with an almost exponential rise since then.
That’s right, Ethereum managed to surpass Bitcoin, but that’s not necessarily a positive thing.
Now, maybe there’s a question as to why this is so relevant. Because previously, the total accumulated fees in one year in Ethereum were much lower when compared to Bitcoin.
In fact, one of the advantages of Ethereum at that time was its low rates and higher transaction speed compared to Bitcoin.
This was also noted by CoinMetrics when they wrote on Twitter that, last year, the accumulated rates in Bitcoin were $135 million while in Ethereum they were only $27 million.
It all started when, starting in June, Ethereum began to record revenue from higher daily fees. However, it was between August and September that it broke records and has gradually lost usability.
Ethereum’s situation becomes more complicated as UNI moves forward
Problems that persist
As we have pointed out in CryptoTrend, the important pressures on Ethereum started with the take-off of DeFi and its subsequent boom.
Certainly Tether (USDT) also compromised a significant portion of Ethereum’s Blockchain usage, however, the impact of DeFi has been significant.
This has led the Blockchain to a point where it has lost its usability for many crypto investors. In fact, experts question how long it will be able to keep up with the pressure and whether DeFi protocols will have to resort to other solutions.
At the moment, there is no plan drawn up regarding how to solve the situation at Ethereum. The situation is likely to calm down as the euphoria in DeFi stabilizes, but will that happen soon?