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The rise of DeFi is remarkable, but there's still a nostalgic longing for the days when you could transfer money for just five cents.

tokenviewAbout 2 min

The rise of DeFi is remarkable, but there's still a nostalgic longing for the days when you could transfer money for just five cents.

Ethereum’s fees seem to be never coming back.Tokenview Chartsopen in new window Easily view Ethereum transaction fees.

Since June, transactions on the Ethereum chain have generated transaction fees of 89,710.76 ETH, equivalent to the currency price of the day, which is approximately US$21.4165 million. At the same time, Bitcoin on-chain transactions generated 1,214.34 BTC in transaction fees, which is approximately US$11.6081 million.

The rise of defi Even excluding the impact of the sky-high handling fee incident, Ethereum’s transaction fees in June still reached 61306.64 ETH, which is approximately US$14.4333 million, and the average daily transaction fee reached 2270.61 ETH.

In the comparison of on-chain transaction fees and mining revenue, Ethereum’s proportion is also rising.

The rise of defi Bitcoin’s on-chain fee/mining revenue ratio from June to now has averaged 6.56%, while Ethereum’s ratio is 17.44%.

Even excluding the impact of sky-high transfers, this value still reaches 14.85%.

Generally speaking, the higher the handling fee ratio, the higher the network usage. Whether transaction fees can make up for the declining block rewards is one of the important indicators of the long-term development of the network. In this regard, Ethereum seems to have been ahead of Bitcoin through various on-chain activities.

The rise of defi But on the other hand, high on-chain transaction fees will also cause some problems. For example, many developers are quite dissatisfied with the continuously rising transaction fees. In order to obtain confirmation as soon as possible when calling the contract, users have to increase the handling fee and obtain the right to be packaged and uploaded to the chain first, which further raises the user threshold.

But overall, the increase in transaction fees seems to promote the healthy development of the network. On the one hand, developers and users will consider every transaction more carefully, thereby increasing the value of on-chain data; on the other hand, as block rewards continue to decay, miners can receive compensation from transaction fees and continue to invest in computing power Ensure network security.

But having said that, I still miss the days when I could transfer money and confirm it in one go for just five cents.

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