2024-07-01
In Q2 2024 users paid $440 million in Bitcoin fees. While users paid $441 million in Ethereum fees.
In Q2 2024, the transaction fees for
Bitcoin (BTC) and Ethereum (ETH) were nearly the same.
This is a significant change as historically;
Bitcoin transaction fees have frequently been lower than those on Ethereum.
The increase in Bitcoin fees can be
attributed to several factors.
Bitcoin’s limited block size leads to
congestion and increased competition for block space, resulting in slower
transaction speeds compared to Ethereum.
Bitcoin transaction fees are determined
by transaction size and network congestion.
On the other hand, Ethereum fees are
driven by gas consumption, which increases with the complexity of operations or
smart contracts.
However, Ethereum users paid 63% less
fees during this window compared to the last quarter.
This could be due to the Ethereum
Consensus Layer upgrade (formerly known as Ethereum 2.0), which is predicted to
reduce Ethereum transaction fees.
Moreover, the integration of EIP-4844
introduced “blobs”, which significantly reduced transaction fees for layer-2
blockchains and encouraged greater on-chain activity.
In conclusion, while both Bitcoin and
Ethereum operate on blockchain technology, there are key differences in how
they handle transactions, which can lead to variations in transaction fees.
This year Bitcoin’s transaction fees have been increased to the same level as Ethereum. While, Ethereum transaction fees have been reduced because layer-2 scaling solutions help Ethereum alleviate its network congestion.
