Bitcoin Fees Plummet: Why Ethereum Users Are Paying More!

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Based on data from the crypto analytics platform CryptoQuant, Ethereum‘s transaction costs have generally surpassed Bitcoin‘s in terms of expense during the recent period of months.

According to a graph presented by CryptoQuant CEO Ki Young Ju, Bitcoin’s transaction fees typically fluctuate between $0.50 and $3.00, while Ethereum’s fees usually hover between $3 and $6.

ETH tx fees are higher than #Bitcoin’s. Just saying 🤷‍♂️

— Ki Young Ju (@ki_young_ju) January 17, 2025

Both the Bitcoin and Ethereum networks kicked off the year with relatively low fees under $3. 

400 Bitcoins, approximately equivalent to $39 million in value, were generated through mining across 128 blocks on a Thursday. However, the fees that miners received amounted to just $731,000.

Yesterday, Ethereum network users collectively shelled out approximately $3.2 million in fees. Over the last month, these fees have dropped by around 41%.

Profit squeeze 

In the previous year, the Bitcoin system underwent a halving process, resulting in the block reward being slashed to only 3.125 Bitcoins.

It was uncertain if certain miners could continue their operations because their profits were decreasing.

In April, the cost of a Bitcoin transaction reached a peak of $128, largely because of the surge in popularity of Runes. Yet, this peak proved to be brief respite for miners, as the fees subsequently dropped by over 90% by early May.

This month, Financial Times announced that American Bitcoin firms have been purchasing Bitcoins to offset the effects of shrinking profits. Although the value of Bitcoin has risen substantially, Bitcoin miners continue to face challenges with profitability. Over the last two months, the industry has collectively spent approximately $2 billion on Bitcoin purchases.

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2025-01-17 20:00