Ethereum’s (ETH) Daily fees Surpass Bitcoin’s (BTC) Again

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Wed, 06/10/2020 - 10:53
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Vladislav Sopov
Some events repeat themselves, but Messari expert Ryan Watkins believes time its special. Here’s why
Ethereum’s (ETH) Daily fees Surpass Bitcoin’s (BTC) Again
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Ryan Watkins, a research analyst for Messari, has revealed the major catalysts behind the flip from both Bitcoin (BTC) and Ethereum (ETH).

Strong trend instead of momentary spikes

As revealed by Mr. Watkins, typically, Ethereum (ETH) surpasses Bitcoin (BTC) in terms of total network fees in ‘momentary spikes’. The last time this occurred was during the painful crash in ICO euphoria in mid-2018.

Ethereum (ETH) surpasses Bitcoin (BTC) in daily fees
Image by Messari

But now it looks as though Ethereum's (ETH) advantage may hold for some time. This is the result of increased usage of the Ethereum (ETH) network as a settlement layer. 

Mostly, this works perfectly with stablecoins. As covered by U.Today Crypto News, the ERC20-based USD Tether (USDT) stablecoin is one of the biggest parties using Ethereum (ETH) network resources. 

Also, many Ponzi schemes that use Ethereum (ETH)-based stablecoins, like Paxos Standard (PAX), consume an insane amount of Ethereum (ETH) bandwidth and, therefore, cause high network fees.

Second-layer solutions may turn this around

However, the Messari expert foresees that the implementation of scalability solutions, primarily – a second-layer infrastructure – may unload the Ethereum (ETH) main chain. If this happens, network fees will plunge.

He remembered the migration of USDT (ERC20) transactions to Plasma sidechains by the OMG Network, which upgraded the performance of Bitfinex exchange.

With this upgrade, numerous Ethereum (ETH) transactions are processed in the same block. Plasma infrastructure allows processing some data off-chain to save the capacity of the Ethereum (ETH) mainnet.

Mr. Watkins outlined that this move will be of crucial importance and

could relieve pressure on the Ethereum blockchain and reduce fees.

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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.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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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.)