Despite Merge, Ethereum commissions are 100 times higher than Visa.
Investors’ attitudes toward classic financial company stocks show that Wall Street is increasingly tilting in favor of those corporations that can offer financial services with low fees. Against this backdrop, cryptocurrencies will have to compete, but not all of them will be able to do so effectively. While the average bitcoin blockchain commission is shrinking, to $1.35 after another spill below $20,000, the average bitcoin blockchain commission is shrinking, to $1.35.
However, there is no strong decrease in commissions from Ethereum: in the latter case, they are on average 100 times higher than similar commissions from, for example, Visa, and amount to $1.39 on average at the beginning of the new week.
PayPal also says about the importance of reducing commissions: since the beginning of the year they began to assign a commission of 1.8% for a cryptocurrency transaction amounting to 1 thousand dollars and 1.5% for an amount over 1 thousand dollars. Whether it’s a lot or not is up to the competition: Coinbase has a lower commission for all types of cryptocurrencies – 1%. Coinbase goes the way of classical brokerage companies which started to get more than 80% of their proceeds in the world not from trading but from additional services, including asset management consultations, different researches and so on.
At Coinbase, the monetary share of subscriptions to value-added services reached 18% of revenue in Q2 2022. These value-added services include revenue from the U.S. federal government, to which Coinbase provides cryptocurrency transaction tracking services.
The general trend suggests that fees will go down to zero. For example, the U.S. division of cryptocurrency exchange FTX, FTX.US, has begun offering buy-and-sell services to Wall Street companies with zero fees. This move means that in cryptocurrency trading, too, the future will be for companies that handle cryptocurrencies with low commissions and also have zero commissions for trading digital assets.
