Ethereum Transaction Fees to Miners Surpassed the cost of maintaining the Network Last Month

Michael LaVere
  • Ethereum transaction fees paid to miners surpassed uncle rewards last month. 
  • Users paid more than the cost of maintaining ethereum's network. 

Ethereum transaction fees paid to miners surpassed the cost of maintaining the network last month.

According to a series of tweets by Ankit Chiplunkar, research lead at The Token Analyst, Ethereum transaction fees paid to miners exceeded the uncle reward in March 2020. Ethereum users paid 26,100 ETH ($4.4 million) in transaction fees to miners last month versus the uncle reward of 20,400 ETH ($3.4 million). 

Chiplunkar explained the discrepancy between miner fees and the uncle reward, saying that users are paying more than the cost of maintaining ethereum’s network on a 15-second blocktime. 

The research lead also showed that fees paid by smart contract transactions have outweighed basic ether transactions since January 2019. Last month, smart contract fees were 8.6 times greater than those of regular transactions on ethereum’s network. 

One user pointed out the discrepancy in last month’s miner fees and uncle reward may have represented an anomaly, as the crypto markets experienced one of the worst single days of losses on Mar. 12. 

Featured Image Credit: Photo via Pixabay.com

Ethereum Was Behind 85% of Dapps' $12 Billion Volume in Q2 2020

The total transaction volumes of decentralized applications (dapps) in the cryptocurrency space hit $12 billion in the second quarter of this year, rising by $4.5 billion compared to the first quarter. Etheruem dapps accounted for 85% of the volume.

According to DappRadar’s Industry Review report, there are more than 70,000 active wallets across 13 different blockchains interacting with the cryptocurrency space. The top blockchains were EOS, TRON, and Ethereum, with the latter representing $10.2 billion of the $12 billion volume seen in Q2.

Ethereum’s large transaction volume was partly fuelled by Compound and the launch of the COMP token, which led to a “yield farming” trend, in which users were interacting with the protocol as much as possible to receive COMP tokens. Compound saw $1.2 billion move through it.

The yield farming trend saw Ethereum gas prices and transaction fees increase, which according to the report did not stop Ethereum dapps from thriving in general. It did, however, contribute to an 80% drop quarter-on-quarter for ETH gaming dapps, as high gas prices are “killing” their activities on the cryptocurrency’s network.

Despite Ethereum’s growth, EOS and TRON (TRX) dapps have also seen their activity increase in the second quarter of the year. According to the report in only three months, TRON’s transaction volumes on decentralized applications surged by over 17,200%.

The rise was largely attributed to Oikos.cash, a TRON-based version of the Compound lending protocol.  While TRON’s DeFi growth has been notably, DappRadar pointed out that most dapps on its blockchain are still in the “gambling” and “high risk” categories.

The EOS blockchain has still been enduring the effects of the EIDOS token airdrop, which put the network into “congestion mode.” The airdrop clogged the network and as a result, from 2019 to 2020 wallet activity on decentralized applications dropped 53%.

So far this year, $1.9 billion have been transacted on decentralized applications using the EOS blockchain, thanks to two dapps: Crypto Dynasty and Upland. DappRadar’s report also shows that two other blockchains are growing thanks to gambling dapps: WAX and ThunderCore.

Featured image via Pixabay.