Ethereum Dominates Blockchain Competition with Unmatched Network Fees
- Rudolph Harmon
- April 10, 2023
- News, Blockchain
- Blockchain, Ethereum, Layer 2 networks, transaction fees
- 0 Comments
As per recent findings by blockchain data firm Token Terminal, Ethereum has emerged as the clear leader among its blockchain counterparts in terms of generated fees.
Token Terminal’s report, says that Ethereum has produced an impressive $743 million in overall daily fees over the past six months. In contrast, its closest competitor, TRON, has not even produced half of this amount, at $282 million. Meanwhile, the Bitcoin network generated just under $80 million for the same period, which is almost ten times less than Ethereum’s generated fees.
Ethereum Comes on Top
Token Terminal has stressed the importance of evaluating fees as a vital metric for determining the usage of protocols. This data can provide insights into the growth and adoption of the ecosystem, with Ethereum leading the industry. In line with this, Uniswap has emerged as the third-largest crypto network in terms of fees generated, with an impressive $269 million over the last six months.
As per the data provided by Crypto Fees, Ethereum has garnered a noteworthy $6 million in fees on a daily basis over the course of the last week. In contrast, Solana, a competing platform also referred to as an “Ethereum killer,” has only generated an average of $36,700 in daily fees.
Trending Layer 2 networks
In addition, BitInfoCharts has recently reported that Ethereum’s average transaction fees remain relatively low, hovering around $4.70. However, for the average non-whale user, this still represents a significant expense compared to other networks. Despite these high fees, Ethereum continues to dominate in this metric.
To address this challenge, Layer 2 networks have emerged as a potential solution. The most renowned L2 network, Arbitrum One, ranks sixth-highest when it comes to overall generated fees.
Moreover, as per the reports of Crypto Fees, Ethereum has generated an average of $236,000 in fees daily over the past week. Additionally, L2fees highlights that conducting an Ethereum transaction on the Arbitrum network only costs $0.06, and token swaps cost $0.17.
Although the optimistic roll-up technology used by the network offers significant advantages, it may take up to a week to withdraw Ethereum from the network, making it less than a perfect solution.