Will there be a flippening in transaction volume? The gap between Ethereum and Bitcoin’s on-chain transactions has reached an all-time low.
The chasm between Bitcoin and Ethereum’s transaction volume has been growing for several months now. Ethereum’s daily on-chain transaction volume was 60% that of Bitcoin’s, after hitting an all-time low of 0.6 on Aug. 30. This marked the lowest transactional disparity ever recorded between the two largest Blockchain networks.
This increase in on-chain transaction volume comes at a cost. ETH transaction fees are once again approaching record highs, with an average fee of $5.83 registered on Monday, Aug. 31. In fact, the transaction fees on Ethereum have been soaring all throughout the past month; in August, the average daily transaction fees amounted to $3.68 million, compared with just $1.08 million the month before — a 240% increase.
The fee hike is precipitated in no small part by the growing popularity of decentralized financial protocols and yield farming platforms. Overall, the total value locked in DeFi has more than doubled over the last month, soaring from $3.99 billion at the start of August to $8.28 billion today.
Over the past 14 days, the combined balance of the largest ETH addresses not owned by centralized exchanges has grown by an additional 886,560 ETH (~$350,000,000 at current prices), indicating renewed confidence in the coin’s short-term price potential among some of its major investors.
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