If network fees are used as a determinant of the demand for a blockchain, then it appears that Bitcoin’s blockchain is lagging behind that of its competitors as its fees has steadily dropped on this metric in recent times.
According to a tweet from Banteng, a Yearn Finance developer, the blockchain of the flagship crypto asset has dropped to seventh on the table for daily fees generated from network usage.
Ethereum Leads the Pack
While Bitcoin’s daily fee for August 15 was ranked sixth with $515,789 generated, the second most valued asset, Ethereum, generated around $18.85 million in fees for the same period, according to CryptoFees. Bitcoin’s figure represents just 2.5 percent of the total generated by Ethereum for a day, which earned the asset the first position.
It is followed by the Uniswap DeFi exchange, which came second on the daily fees record, with $2.48 million. Third on the list is Binance Smart Chain, with $2.18 million. Surprisingly, the flash loan platform AAVE and the SushiSwap Dex were also ahead of Bitcoin, with $1.4 million and $836,000, respectively. Equally, Compound, the DeFi lending protocol, also surpassed BTC.
However, Ethereum is not only leading in daily network fees generation. It is also ahead of Bitcoin in other metrics such as on-chain value settlement, active addresses, and daily transactions. Data from BitInfoCharts revealed that Ether had over 1 million processed transactions, while that of Bitcoin stood around 200,000.
According to the developer, Ethereum’s success in network fees indicate that people find “immense value” in the blockchain of the second largest crypto asset by market cap.
It is important to note that Etherereum’s gas fees have surged by over 160 percent in August alone. At the beginning of the month, transactions, on average, cost $8 on the network, however, that has risen to as high as $21 on August 16. Per Etherscan, the average fee for carrying out a simple Uniswap token swap is around $25.
Bitcoin Miners Revenue Still High
Despite this poor performance of Bitcoin in its daily network fees, miners’ revenue is up by almost 57 percent, hitting the mid-2020 levels, according to data from Glassnode.
Recall that May saw Bitcoin mining power plummet by more than 50 percent due to the hostilities to the space by Chinese authorities. However, the hash rate is progressively climbing with around a 25 percent recovery as, hitherto offline miners are finding new homes for their mining centers.