Recently, the Bitcoin network’s value settlement efficiency has been steadily improving. More transactions are being made for lower fees.
The Bitcoin network has settled or transferred an average $95,142 worth of fees for each $1 over the past week.
Since May, the on-chain settlement efficiency has steadily increased as more data has been moved across the network during bull cycles.
Dylan LeClair, an analyst on the chain, made the observation with data from analytics provider Glassnode. Divide the transaction volume average by the fees to get the value.
The #Bitcoin Network has transferred on average $95,142 worth of value per $1 of fees over the past seven days. For every $1 of fees, the median transaction saw $751 worth of value transferred. pic.twitter.com/DzSwxCDKkd
Dylan LeClair (@DylanLeClair_ November 29, 2021
Final settlement costs were just 0.00105% from the $451.3 billion total value.
According to CryptoFees Bitcoin ranks seventh on the list of networks ranked by daily transaction fees. Its average seven-day price is $678,000, which places it behind Ethereum and Uniswap as well as Binance Smart Chains, SushiSwapswaps, Aave, Compound, and SushiSwap.
According to the fee tracking platform, Ethereum currently processes $53 million per day in fees. This is 98.7% higher than the Bitcoin network. The fees and value settlement of Bitcoin and Ethereum are not comparable. They are two distinct entities. The former is a store-of-value asset, while the latter is a smart contract network and decentralized application platform.
The average transaction volume for Ethereum divided by fees is $139 per dollar.
As more value is added to Ethereum’s network, and as a result of a greater demand for it, the settlement efficiency of that network has fallen. This is especially true with DeFi and NFTs in the last 18 months.
Related: Daily settlement volume at Bitcoin network reaches record high
Bitinforcharts reports that the Bitcoin network’s average transaction fee is currently around $2.13. The Ethereum network’s average transaction fee is $42.58. Yesterday, Cointelegraph reported that Bitcoin transaction fees have fallen by more than half this year.
You can see the divergence between the average transaction fees of the two networks increasing since the end July.
Average fees for ETH and BTC, 6M – Bitinfocharts.com
Layer two networks can solve Ethereum’s network fees woes. They have seen a surge in adoption over recent months, with a near all time high total value of $6.87 Billion according to L2beat.