For the first time in history, the fees paid for Ethereum transactions exceeded the aggregated commissions on Bitcoin’s network. In the last 24 hours, Ethereum users paid $207,000 compared to nearly $183,000 fees on the Bitcoin network. The average transaction fee paid for Ethereum now amounts to $0.16 per transaction, while for Bitcoin it is $0.206, according to Messari.
Both networks use Proof-of-Work (PoW), a consensus algorithm that is secure and energy inefficient, which implies that the platform rewards miners who secure and confirm transactions. The higher the demand, the larger the fees and it appears that Ethereum is drawing more attention these days and is bringing bigger profits to miners despite the plans of shifting to a Proof-of-Stake (PoS) consensus algorithm.
While preparing for the Istanbul hard fork, Ethereum is on the way to improving its capacity by 25%. As various developers and miners, including Vitalik Buterin, confirmed this week that testing is currently underway with the general mission to improve network performance and eventually reduce transaction fees.