- Ethereum has seen immense congestion as of late due to an influx of transaction demand.
- The transaction demand stems from the rise of decentralized finance applications, which take up a large amount of block space.
- ETH miners have collected so many fees that data shows that they made eight times more than Bitcoin miners in transaction fees over September.
- Proponents of Ethereum say that this is a positive sign for the cryptocurrency, as it may give the network more security.
- Whatever the case, this is one of many positive fundamental factors for Ethereum.
- It is unclear if these fundamentals will be enough to drive the price of ETH higher, though.
Ethereum Miners Made More Than Bitcoin Miners in Fees Over September
According to Ian Lee, an Ethereum-focused venture investor and analyst, there was a large discrepancy over September in the transaction fees collected by the two top blockchains.
Citing data from Glassnode, a blockchain data firm, Lee noted that Ethereum miners collected $166 million in transaction fees over September. Over that same time frame, Bitcoin miners collected a relatively low $26 million in transaction fees.
This means that over the course of September, Ethereum miners made around eight times Bitcoin miners did in transaction fees alone. This does not count the block subsidy, but it is quite a stark shift in trend.
September 2020 miner fee revenue:
Ethereum's miner fee revenues past Bitcoin's due to DeFi. pic.twitter.com/zX46ndUgWe
— Ian Lee 💭 (@ianjohnlee) October 2, 2020
Ethereum’s dominance in the realm of transaction fees comes as DeFi has seen a strong surge in adoption.
This segment of the crypto market has drawn in many users looking to turn a profit. Platforms like Uniswap, MakerDAO, Aave, and others are giving users an incentive to send more transactions on Ethereum than ever before, driving transaction fees higher.
One of Many Positive Fundamental Factors
ETH’s high transaction fee revenue is a fundamental factor, analysts say, as it shows that the blockchain is beating its competitors.
This is but one of many positive fundamental factors for Ethereum shared over recent weeks.
For one, scaling solutions are undergoing development as I write this. For one, the ETH2 upgrade, which will overhaul the blockchain to increase transaction speeds and throughput, is expected to launch in November.
It is unclear if these fundamental factors will drive ETH higher in the near term. The cryptocurrency was recently rejected at the critical resistance in the $365-375 range, suggesting it may correct towards range lows prior to moving higher, if at all.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Ethereum Miners Made Eight Times More Fees Than Bitcoin Miners in September