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Ethereum (ETH) Users Pay Only 10% of Network Fees. Who Pays the Rest? Glassnode Analysts Answer

News
Wed, 06/17/2020 - 10:47
Vladislav Sopov
The CTO of the Glassnode analytical team, Rafael Shultze-Kraft, reveals the sources of transaction fees in the Ethereum (ETH) network
Ethereum (ETH) Users Pay Only 10% of Network Fees. Who Pays the Rest? Glassnode Analysts Answer
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Contents

Mr. Shultze-Kraft has identified the main parties responsible for transactions in Ethereum (ETH) and discussed the most meaningful processes.

Little stake

According to the researcher, end-users that use the network for Ether remittances, pay only 10.7% of all Ethereum (ETH) fees. This number has been steadily decreasing: one year ago it managed to spike over 30%.

Users pay only 10.7% of Ethereum (ETH) network fees
Image via Twitter

In contrast, the share of transactions related to stablecoins is on the march. This share has been surging since 2019. The analyst revealed that as of May 2020, 20% of all Ethereum (ETH) transaction fees are from USDT transfers.

USDT makes up 92.8% of Ethereum-based stablecoins. Three other popular stablecoins, Paxos Standard (PAX), USD Coin (USDC) and DAI account for about 6.5% of the fees, combined.

High fees for zero-value transactions is another interesting phenomenon of the Ethereum (ETH) fee landscape. As unveiled by Mr. Shultze-Kraft, 

These transactions are most likely used for transaction cancellations during times of large network usage and high gas price volatility.

Contracts have an upper hand

But the most significant category of Ethereum (ETH) network fee contributors belongs to various contracts. Three different contract categories are most active in this regard.

The analyst pointed out decentralized exchanges, games and transacting tokens (e.g. $POCC and $WENI) as the top payers of this category. But Ponzi schemes are responsible for the bulk of fees in this category.

The most active Ponzi, as covered by U.Today Crypto News, has consumed up to 15% of all of the resources of the Ethereum (ETH) network. The total amount of fees it has paid is inching closer to 6,000 ETH, Glassnode calculated.

Among the 'legitimate' decentralized financial instruments, the top payers are Kyber Network, IDEX and Oasis DEX protocols.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
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Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
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Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)