The daily rates of the Crypto Cash network exceeded those of the Bitcoin network (BTC) for two consecutive days on June 6 and 7, according to data obtained by the market analysis firm Glassnode.
According to Glassnode, on June 6, the total amount of fees spent on the Ethereum network was US$498,000, compared to US$308,000 for Bitcoin. The gap continued to widen the next day, with totals of USD 540,000 and USD 258,000 respectively.
The Coin Metrics report shows that the transfer value of the stablecoins reached USD 444 million
This is the second time that Ethereum’s network fees exceed those of Bitcoin this year. On March 12, there was a sudden increase in the Ethereum network fees, which totaled almost USD 800,000, far exceeding the amount paid by Bitcoin users on the same day. The Ethereum network was experiencing heavy congestion at the time, which probably led users to pay more fees for their transactions.
This time, the reasons behind what Twitter commentators call „feepening“ seem similar.
Someone anonymously posted an ETH 2.0 escalation solution on Medium
First, Bitcoin’s mempool recently cleared as a result of the last difficulty adjustment, which took place on Thursday. The lack of pending transactions has greatly reduced the transaction fees on the network, which have dropped to the $1 mark. By way of comparison, on May 20, an average Bitcoin transaction could cost as much as $6.6 due to the post-halving state of the network.
The Ethereum mempool is currently clogged, with more than 103,000 transactions pending, which partly explains the latest network fee numbers. In addition, the transfer value of stablecoins has reached new records this year, suggesting that stable currencies, most of which, such as Tether (USDT), Paxos (PAX) and USD Coin (USDC), operate in the Ethereum network, have contributed greatly to network activity.
The President of the Fed hints at the use of a benchmark interest rate based on the Ethereum
Ethereum 2.0 will address scalability issues
The developers of Ethereum aim to address the issue of scalability in the next update of Ethereum 2.0, scheduled for July.
Specifically, the network will move to a Proof-of-Stake, or PoS, consensus, which means that asset holders, called stakers, will be responsible for validating the network rather than the miners. Interestingly, last week, an anonymous user launched an ETH 2.0 scale solution in Medium.