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HomeEthereum NewsMedian Ethereum Fee Up Almost 1,300% Since April, Bitcoin Fees Jump Too

Median Ethereum Fee Up Almost 1,300% Since April, Bitcoin Fees Jump Too

The fees on both Ethereum (ETH) and Bitcoin (BTC) networks are rising yet again, prompting both the user dissatisfaction and discussions of possible solutions.

There seems to be no end to what many perceive as major issues with high fees on the two biggest networks. The median average Bitcoin transaction fee is currently USD 3.84. Looking at the seven-day moving average, following the spike in late May to USD 5.45, the fees dropped to little above USD 1 in June, staying on that level until mid-July.

Now, we see it rising again. Between July 12 and July 23, the fees went up 142%, to USD 2.73.

The median transaction fee shows a similar picture, staying around USD 0.5 between the May high and mid-July. Since July 12 when a sharp rise started, this fee shows an increase of 184% to USD 1.65 on July 23.

Median transaction fee, USD, 7-day simple moving average

Furthermore, BTC mempool, where all the valid transactions wait to be confirmed by the Bitcoin network, has also been more crowded in the second part of July, with a rising number of transactions between 40 and 140 satoshis per byte.

Meanwhile, the average Ethereum fee is currently USD 1.39 when looking at raw values. Seven-day moving average shows that the network experienced a massive spike in June – from USD 0.5 to USD 1.6 – dropping back as fast as it increased.

It had mostly maintained USD 0.5 – USD 0.6 level until July 15, going up 58.3% since to USD 1.04 on July 23.

The median transaction fee, though, shows an interesting picture – the fees have been on the rise since April. Between April 1 and July 23, the median fee (seven-day moving average) shows a rise of a whopping 1,289% – from USD 0.035 to USD 0.486. This number was higher in July of 2018 when it reached USD 0.91, and in January of the same year, when it hit an all-time high of USD 2.26. To compare, BTC median fee increased by 352% since April.

Median transaction fee, USD, 7-day simple moving average

And this is far from the first time that people have criticized the networks’ high fees.

Meanwhile, blockchain intelligence company Coin Metrics argued earlier this week that higher fees spells good news for ETH miners, and added that rising fees prove that the network is in rude health. However, Ethereum co-founder Vitalik Buterin seems to be of a different opinion. He warned:

Transaction fee revenue is now nearing half as high as block reward revenue. This actually risks making ethereum *l… https://t.co/HsI7YuJ7G9

— vitalik.eth (@VitalikButerin)

Also, Da Hongfei, co-founder of blockchain platform NEO, called the competitor’s fees “ridiculously expensive.”

Even if fees always remain high at layer 1 on eth1, I imagine that most users will just be interacting with layer 2 in the future. Then, ideally, you would have batch settlements to layer 1 so that the fee is cheaper for the individual user.

— Anthony Sassano | sassal.eth ‍ (@sassal0x) July 24, 2020

“Ok, Ethereum fees are high versus history but some of you are way too doomsday about it, especially with solutions coming,” wrote today Eric Conner, a product researcher at blockchain startup Gnosis, adding that “I haven’t hyped up phase 2 [of ETH 2.0] as the solution. I’ve hyped eth1 l2 ideas as the solution.”

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