People have thought for a long time that Bitcoin (BTC) is too expensive for everyday activities compared to Ethereum (ETH). Recent data research and market trends, on the other hand, paint a different picture, which challenges this long-held belief.
As of July 8, 2024, the average transaction fee for Ethereum is $0.68, which is a lot more than Bitcoin’s $0.40. This difference shows that the story about transaction prices between the two most popular cryptocurrencies is changing. Bitcoin is often the more cost-effective choice for regular trades and peer-to-peer payments, despite what most people think.
Ethereum Transaction Fees Surpass Bitcoin’s Due to Growing Use Cases
Ki Young Ju’s study of on-chain data shows a major pattern: Since 2021, Ethereum’s transaction fees have gone up many times, and now they often go above Bitcoin’s. This rise is mostly due to Ethereum’s growing number of uses, especially in decentralized finance (DeFi) and non-fungible tokens (NFTs). Fees on the Ethereum blockchain go up because these apps often cause the network to become crowded.
With a price of about $58,274, Bitcoin has recently moved above the 200-day Exponential Moving Average (EMA). This could mean that the price is starting to rise again. This fairly optimistic view of Bitcoin’s price path is backed up by technical indicators like volume patterns and an RSI reading of 40 points.
It costs more to give and receive money on Ethereum because smart contracts and decentralized apps are used for more things. These changes make Ethereum more flexible, but when the network is busy, they raise fees.
There is no evidence to support the claim that Bitcoin transactions are by default more expensive than Ethereum transactions. Lots of people think Bitcoin’s fees are really high, but they’re not. Bitcoin is a good way for people to pay for things and do everyday deals.
