Ethereum and Tron Network have teamed up to conquer a whopping 88% of total transaction fees! Ethereum, the reigning champion, takes the lead with a staggering 57%, while Tron follows closely behind with an impressive 31%. These two titans are leaving their competitors in the dust and redefining the landscape of transaction fees in the most dominant way possible.
Transaction Fees Monopolized by Two Blockchains
Coutts, in a statement posted on X (formerly Twitter) on October 7th, explained that there are approximately 200 smart contracts and Proof of Stake (PoS) blockchains. However, the majority of transaction fees from these 200 blockchains are attributed to Ethereum and TRON.
Coutts also discussed the main challenges faced by most PoS blockchains. These challenges include an oversupply of blockspace, inflationary supply schedules, undisclosed supply indicators, and subpar tokenomics.
Despite the bear market, Coutts believes that there is a long-term increasing demand for blockspace.
Rivalry Between ETH and TRON’s Transaction Fees in 2023
Ethereum’s transaction fees have hit a major milestone, reaching their lowest point in years. Recent data from blockchain analytics firm Santiment reveals that on September 24th, the average cost of an Ethereum transaction dropped to just $1.15. This is the lowest level we’ve seen since December 2022, marking a significant win for Ethereum users.
Interestingly, Token Terminal, another blockchain data firm, highlighted a stark contrast between Ethereum and TRON earlier this year. Despite TRON holding the second position, Ethereum’s daily transaction fees were significantly higher than TRON’s in April. However, things took a turn in June when TRON’s trading activity nearly doubled that of Ethereum, as July reports unveiled.
It’s worth noting that Ethereum’s current price stands at $1,632, reflecting its strong market presence. In the first half of 2023, Ethereum managed to generate a whopping $743 million in transaction fees, showcasing its immense popularity and utility. In comparison, TRON generated $282 million during the same period, highlighting Ethereum’s dominance in this arena.
Lastly, let’s not forget about Bitcoin. The world’s most famous cryptocurrency generated a mere $80 million in transaction fees during the first half of 2023. While still a significant amount, it pales in comparison to the impressive figures achieved by Ethereum and TRON.
Overall, these developments paint an exciting picture for Ethereum and its users. With transaction fees hitting record lows, Ethereum’s position in the market remains strong, bolstered by its impressive transaction volumes and revenue generation.