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2020-10-09

Ethereum: transaction fees still higher than Bitcoin

For two months in a row, Ethereum (ETH) trading fees are higher than those on Bitcoin (BTC) networks.

Crypto market aggregator Messari tweeted by a streak on October 8th, noting that this is the longest period that Ethereum's transaction fee income has exceeded Bitcoin's in the history of crypto assets.

Ethereum's fees rose to new all-time highs in August as the bubble of decentralized finance (DeFi) began to shift to high gear. The smart contracts underlying the DeFi protocols usually require many Ethereum transactions, which increases network congestion.

Average fees for Ethereum are now around $2, down from a record level in September of over $14.

The sharp increase in transaction costs has triggered a lively debate within the Ethereum community on how to adjust the network during the transition period before the completion of ETH 2.0, which is now expected to happen in 2022.