For the first time in months, Ethereum miners have received higher fees than Bitcoin miners. This type of event does not occur very often.
In recent days, Ethereum miners received 60% more fees than those of Bitcoin. This is a steady increase, possibly related to a higher demand for smart contracts and the increase of transfers on the network.
This event, which occurred on May 6th, had not been repeated for months. Furthermore, it could lead to the price of ETH to go up considerably.
It is worth saying that this event is not very frequent on the network. The fact that this cryptocurrency gets higher fees than Bitcoin means that it offers great opportunities for investors.
Increase in Fees for Ethereum Miners
Ethereum showed on its Twitter account the details of the frequency and magnitude of the event. In recent days, Ethereum daily fees exceeded Bitcoin daily fees. Ethereum fees were 498k, whilst Bitcoin fees were 308k. Until now, this has happened 141 days (8%).
One of the reasons behind this event is that the demand for transfers has grown, due to the volatility of the cryptocurrencies. Another reason is that ponzi schemes may be regaining popularity on Ethereum.
A subject that derives from the previous one is that stablecoins are growing. The demand for stablecoins by crypto traders has increased.
It Has Happened Before
This is an unusual event. However, on previous occasions, Ethereum miners have received better fees than those of the main cryptocurrency.
This first occurred between February 16th and 22nd, 2018. In that period, fees for Ethereum miners exceeded those of their Bitcoin rivals, with 724k for the former and 482k for the latter.
The fees for Ethereum miners reached their highest peak on July 2nd, 2018. Ethereum fees exceeded 2.7M, while Bitcoin fees remained at 151k.
The last time, before now, that the fees for Ethereum miners won the rally was last May. On the 12th of that month, they reached 799k, while Bitcoin miners received 397k.
The Most Important Altcoins
Compared to Bitcoin, Ethereum looks like a small cryptocurrency. According to data from the CryptoCompare website, the market capitalization of Bitcoin exceeds USD 179 billion, whilst that of Ethereum is USD 27 billion.
However, Ethereum has become the most important altcoin. The difference is obvious when compared to Bitcoin Cash since this cryptocurrency has a market capitalization of USD 4.6 billion.
Another Ethereum’s Prominent Feature
The growth in the usability of the Ethereum network could lead to something positive for its price. In this sense, Ryan Sean Adams, founder of Mythos Capital, explained that the price and fees for Ethereum miners have shown a consistent relationship, in the last four years.
He explains that there is a strong historical correlation between both factors, the price of the asset, and the fees. Even though there is currently a “rare exception” in which block fees rise faster than the price, the community expects an adjustment that balances them.
The high use of the Ethereum network could increase the price of ETH in the medium term. Adams said that this is how scarcity mechanisms are designed in the Ethereum game, that is, utility drives value.
By Alexander Salazar
