Ethereum | Miners are full of pockets, Bitcoin lagging behind

Ethereum | Miners are full of pockets, Bitcoin lagging behind

By NassiroV | CryptoPress360 | 11 Jul 2020


Ethereum Set to Eclipse Bitcoin, Only Question is When

Image Source

The fees collected on the Ethereum network have surpassed those of the Bitcoin network for 30 days. For some, this increase is synonymous with adoption of the ecosystem, but the cause could be quite different.

ATH fees on Ethereum

The fees on Ethereum have been going up for several weeks now. So much so that the Ethereum network has been recording more fees collected than the Bitcoin network for 30 consecutive days. This is a great first for the DeFi network.

eth_fees_btc.jpeg?lossy=1&resize=696%2C392&ssl=1

Fee evolution between Bitcoin (purple) and Ethereum (green)

Thus, over the past 30 days the Ethereum network has collected an average of $ 800,000 in fees daily. Bitcoin, meanwhile, has collected half as much.

DeFi or Ponzi?

For some internet users, such as Anthony Sassano, this “Flippening” of network fees shows a greater demand on Ethereum than on Bitcoin:

"It's simple: there is a greater demand for using Ethereum's block space than Bitcoin's"

This growing demand would be mainly fueled by the DeFi ecosystem, and more particularly the yield farming phenomenon garnered by the liquidity mining of Compound and Balancer.

It is true that this justification can leave one dreaming: the Ethereum DeFi would finally be democratizing? Not so sure…

At first, the amount of fees collected on Ethereum was greatly distorted by the 3 transactions accounting for 2310 ETH of gas fees, as part of the hack of a South Korean exchange platform.

In the second step, these fees could effectively indicate the democratization of Ethereum, but not for the right reasons.

Indeed, several Ponzi are extremely active on the Ethereum blockchain. For example, the decentralized application that attracts the most users on Ethereum, Forsage, probably comes under the Ponzi scheme. And yet, the latter is responsible for 11.47% of daily gas use. The same goes for the MMM project, which also also a Ponzi evolving on Ethereum.

eth_dapp_ponzi.png?lossy=1&resize=696%2C157&ssl=1

Two main Ethereum dapps, the Ponzi Forsage and Million Money - Source: DappStats

Excessive use of Ethereum bandwidth by a reduced number of projects, most of which are fraudulent, has a direct impact on gas costs. A problem that could soon be relegated to the rank of bad memories, with the expansion of second-layer solutions, which aims to bring scalability to the Ethereum network. 


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NassiroV
NassiroV

Hi, and welcome to my blogs :)! ​I’m Nassir, a thirty-something guy who loves to travel and write, especially about Crypto and Blockchain. I have been blogging and trading cryptocurrencies for a while. I hope that you find my articles beneficial to you.


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