Victor Ugochukwu · Dec 2, 2020 . 7min read
Billion-dollar blockchains including Bitcoin forks, Tezos and Ripple only reported less than $1,500 transaction fees combined
Atleast 7 among other blockchains it reports in terms of fees worth a combined $25 billion only generated less than $1,500 in transaction fees.
By Victor Ugochukwu · Oct 22, 2020 . 6min read
With increased activity on a blockchain comes increased fees technically called transaction fees. This is a highly important metric to measure not only the level of activity of a blockchain but also the usability of that network. Top blockchain network also maintains its lead in critical mass point based on the amount of fees it generates also.
Ethereum flipped Bitcoin and has remained that way in terms of transaction fees earned by miners. However, according to data from Crypto Fees, at least 7 among other blockchains it reports in terms of fees worth a combined $25 billion only generated less than $1,400 in transaction fees.
Data from Crypto Fees shows Ethereum leads in terms of transactions fees with at least $1.6 million with Bitcoin trailing at $933,000. Perhaps, the most interesting information is about the multi-billion dollar blockchains like Cardano, Tezos, Ripple, Bitcoin SV, Dogecoin, Stellar and Litecoin. According to Crypto Fees website, shows these aforementioned blockchains reported a total of $1,400 in fees. Litecoin, which is a Bitcoin fork and one of the oldest cryptocurrencies had $590 in transaction fees within the last 24 hours. Another Bitcoin fork but a secondary fork (Bitcoin SV split from Bitcoin Cash) had $312 in fees. Tezos, which raised about $232 million during ICO in 2017 reported a mere $193 followed by Dogecoin at $172.
Surprisingly, Ripple with $11.4 billion market cap reported a mere $86 in fees. Cardano and Stellar blockchains reported $79 and $56 respectively in transaction fees.
Crypto transaction fees suggest increased network activity.
For a typical proof-of-work blockchain, miners earn in two ways; block rewards and transaction fees. Ethereum is already gearing transition to proof-of-stake, where it eliminates using an expensive amount of energy to secure the network. For a network like Ethereum, it allows developers to deploy programmable smart contracts. And when any user or the developer interacts with these smart contracts, they pay fraction in fees called gas. It is the miners who process such transactions that earn the gas fees. And with the heightened activities on Ethereum network because of the DeFi boom. As DeFi transactions continued on the Ethereum blockchain, so was transaction fees flowing in.
And among the applications commanding the highest transaction activities and fees is the Uniswap protocol which is a DEX. Within the last 24 hours, Uniswap commanded as much as $588,000 followed by its fork, Sushiswap at $63,000.
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