The value of bitcoin transaction fees is at its lowest in more than two years.
The average bitcoin blockchain commission has fallen below one U.S. dollar, to $0.825, the first time this has happened since June 13, 2020. Notably, the average commission on the Ethereum blockchain, the largest by capitalization and most popular distributed ledger in DeFi, is now $2.54.
Ethereum commissions are prone to large spikes – for example, in May they were over $200 at one point. One driver of Ethereum’s high commissions is the popularity of the field of non-exchangeable tokens (NFT).
The average bitcoin blockchain fee is now declining amid a recovery in the cryptocurrency’s No. 1 mining difficulty indicator, to 28.351 trillion notional units, as well as an increase in hash rate, which is already led to a pivotal change in the Hash Ribbons indicator. August sees a reversal of the three-month trend, when before that the Bitcoin mining difficulty indicator showed a decline.
Bitcoin is beating Ethereum in terms of fees. Moreover, some investors’ expectations that September’s Merge update to the Ethereum blockchain would result in a lower average commission on that blockchain were dispelled a message on the Ethereum website.
Bitcoin’s declining average commission is also a factor in the cryptocurrency’s continued rise in price number one. On August 23, bitcoin price was able to surpass $21,000 again after the digital asset declined beyond that mark at the end of last week and on Monday, August 22.
In favor of further growth in the price of bitcoin is also evidenced by the achievement of the volume of bitcoin reserves on the cryptocurrency exchanges minimum value for the last four years – 2 million 309.727 thousand dollars. Over the past four days alone, investors have withdrawn more than 30 thousand BTC from cryptocurrencies to their accounts, as evidenced by CryptoQuant data.