Bitcoin Earns More Fee But Unable to Beat Ethereum’s Profitability
As per the latest news, it has been told that a huge spike has occurred in the charging of fees by Bitcoin. The spike has helped Bitcoin to gain more earnings in a matter of days. Resultantly, at least 198% high has been recorded by Bitcoin in its fees. It has gone way beyond what it was charging a few days back.
The current rate of transaction fee being charged by Bitcoin is US$ 10.20 which was US$ 3.52 three days ago.
Glassnode, a crypto data aggregator, suggested that roughly 22% of miners’ income is dependent upon the fee earned by Bitcoin. While the rest of 78% of the miners rely on rewards they earn from the blocks.
However, the present spike has helped Bitcoin’s daily average fee to climb into acquiring double figures in US Dollars. Earlier the double-figure fee was charged by Bitcoin as far back as November 2018. But even though with this spike, Bitcoin could not beat the fee being charged by Ethereum. The amount of earnings made by miners of Ethereum is still higher than what is being earned by Bitcoin miners.
Due to heavy induction of stablecoin in Ethereum’s network, it got a big boost in its fee. Similarly, the current decentralized finance (DeFi) frenzy is yet another factor giving a boost to Ethereum’s fee.
Recent data suggests that Ethereum’s total fee being charged in the past 24 hours is over US$ 1.74 Million. While Bitcoin’s total fee charged in 24 hours is roughly around US$ 1.54 Million. These figures were provided and confirmed by Messari.
A proposal has been published by Vitalik Buterin regarding improvement in the Ethereum’s EIP-1559. As per the proposal, it has been suggested to reduce the fee being charged by Ethereum’s network from the users. The proposal got a lot of support from the users but the miners seem to be going against the proposal. This is because if the reduction is caused then their perks will be cut off substantially which is against their interest.
But Bitcoin is currently keeping its upward rally and its price is going up on daily basis. This will resultantly increase the amount of fees gained by the Bitcoin network.